BE.Mining

perseus mining: eurostar diamond traders: ide technologies: ISSUE 8 | www.bus-ex.com/mining

pbe group:

Safety

first PBE’s transformation into an international mining solutions provider

SPECIAL focus: goldcorp - marlin mine

Proud To Win. Twice.

IDE’s Carlsbad Project has just been awarded the Desalination Deal of the Year by the Global Water Awards and North American Water Deal of the Year

by Project Finance Magazine

www.ide-tech.com

More success from IDE - at the leading edge of the world’s water industry

Proven Expertise in Desalination • The world’s largest thermal and membrane desalination plants • Small to large cost-effective solutions • Leading-edge water treatment technologies • Unique IDE PROGREEN™ system that delivers an eco-friendly SWRO solution

Proven Expertise in Industrial Water Treatment • • • •

Reliable, sustainable and economical solutions Proven track record in oil & gas Designed to last Low energy consumption

IDE - 400 plants. 40 countries. 4 decades.

NEW PRECIOUS RESOURCE DISCOVERED

Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

business excellence editorial

Martin Ashcroft

Will Daynes

John O’Hanlon

Editor In Chief

Editor

Editor

Martin has edited business magazines for 15 years and has been editor-in-chief since Business Excellence began. mashcroft@bus-ex.com

Will has been a business writer for three years. He joined the Business Excellence team in September 2012. wdaynes@bus-ex.com

John has contributed to Business Excellence since its inception: he joined the in-house editorial team in February 2013. johanlon@bus-ex.com

design

business

Matt Johnson

Richard Turner

Art Director

Director of sales

Louise Culling

Vince Kielty

Production Designer

Director of Editorial Research

Subscriptions

Sharon Rooke

mjohnson@bus-ex.com

lculling@bus-ex.com info@bus-ex.com

Infinity Business Media Ltd

Suite 22, St Francis House, Queens Road, Norwich, NR1 3PN Tel: +44 (0) 203 137 7100 Fax: +44 (0) 1603 666466

www.bus-ex.com

rturner@bus-ex.com

vkielty@bus-ex.com

Administration & Operations srooke@bus-ex.com

Matt Day Head of technology mday@bus-ex.com

The content of this magazine is copyright of Infinity Business Media Ltd. Redistribution or reproduction of any content is prohibited.

Andy Turner

Š Copyright 2012 Infinity Business Media Ltd.

aturner@bus-ex.com

Chief Executive

BE mining | 5

Be mining

12

12 exec insight: Charles Siwawa

Creating a legacy

Charles Siwawa, CEO of the Botswana Chamber of Mines, discusses the positive changes he has witnessed within the mining industry, what motivates him and the legacy he hopes to leave behind.

16 EVENTs

16

leading investment in mongolia

A post event report on the Mongolian Investment Summit which took part in April this year at London’s Kensington Close Hotel.

special focus:

goldcorp - marlin mine

an in-depth look into goldcorp’s marlin mine from its operations to its sustainable developmet

6 | be mining

18

contents

64

74

services 64 PBE group safety first

PBE’s transformation into an international mining solutions provider and the continued diversification of its product suite.

64

74 OSSA

Tunnel vision

82

Technical director, Íñigo Núñez Blanco discusses how international expansion and the adopting of innovative technologies have been key to OSSA’s growth.

82 Adrok

Looking beneath the surface

A pioneer in the field of geophysical services, Managing director Gordon Stove discusses the next stage in the company’s growth and what it entails.

be mining | 7

Be mining

94 110

metals 94 Codelco

THE COPPER CONDUCTOR

Almost a third of the world’s copper production comes from Chile whose state copper production company Codelco dominates world supply.

110 Nkomati Mining Reaping the rewards

Mining manager Trevor Visagie explains how the rapid development of the Nkomati mine continues to reward not only its employees, but the local community as well.

124 FerroAtlĂĄntica The metals of energy

124 8 | be mining

Combining bewildering diversity with simple principles and sticking firmly to its objective of remaining the world leader in silicon metal and other diverse alloys.

contents

140 Atico Mining

Copper and gold from Colombia Single-mindedly preparing to rejuvenate the senescent El Roble mine.

140

150 VALE Brazil

Simply ore-inspiring A monumental project, possessing over seven billion metric tonnes of iron ore reserves.

Precious metals 162 Perseus Mining

A PROMISE IS A PROMISE

150

West Africa still hosts mineral deposits that for one reason or another have remained underdeveloped: for certain Australian prospectors they became an obsession that is now paying off.

162

be mining | 9

Be mining

182 202

182 Eldorado Gold

Adding value through exploration

How the company’s activities in Greece are playing a fundamental part in helping to achieve its goal.

minerals 202 Eurostar Diamond Traders Polished perfection

How the company is geared up to meet both the challenges of today and the future.

224

214 Base Titanium

Building the foundations of the future How the work of Base Titanium on the Kwale Project is helping to shape the future prosperity of Kenya.

224 Allana Potash A class apart

The results of Allana Potash’s recent feasibility study on its Danakhil Potash Project in Ethiopia and how the company plans to build on this going forward.

10 | be mining

contents BE Directory 236 adrok

Pioneering Geophysical services

242

238 Arlona Engineering PROUDLY SOUTH AFRICAN

240 Buks Haulage Limited Logistical solutions

242 C.C. JENSEN

cleaning up the competition

244 Chritech Engineering Services

246

solid engineering

246 minopex

your partner in profitability

248 mintec

PRODUCTIVITY FROM MINESIGHT TO YOUR SITE

254

250 motor plan S.A. leading car rental

252 ppe technologies a company with vision

254 Simulation Engineering Technologies computer simulation

be mining | 11

executive insi ht

Creating a legacy Charles Siwawa, CEO of the Botswana Chamber of Mines

I understand you studied at Leeds University, is that correct?

That is correct. I did my Mining Engineering degree at Leeds University, completing it in 1982, after which I returned to Botswana to work for Debswana Diamond Company.

Six years later I went to do my Masters in Industrial and Administrative Sciences at City University in London. In 1990 I returned to Botswana to continue my employment with Debswana before eventually joining the Botswana Chamber of Mines (BCM) in 2010.

You have witnessed first-hand the evolution of the mining industry in Botswana over the last several decades. What have you found to be the most important development made when it comes to mining in the country?

I think what has really impressed me over the years has been just how technological advances have been adopted and in turn developed in Botswana, before going on to be

replicated with great success in others parts of Africa. I have also taken huge pride from the fact that Botswana has made immense progress when it comes to supporting local people and communities in terms of corporate social investment. Debswana Diamond Company for example was one of the first companies in the world to actively enrol all its employees onto HIV/Aids medication programmes, free of charge. Many other businesses have since followed suit and I think this has helped communities in general and also paint a positive picture of the mining companies in the country.

When you compare the state of Botswana’s mining industry today to that of when you first took on the role of CEO of the BCM what change stands out the most to you?

I think one has to look at the mining industry as a whole. You look at where the sector has come from and where it is heading and the change is pretty clear, for example the fact that in the last ten years we have witnessed

BE mining | 13

“growing the Chamber, providing it with strategic thinking and vision, has given me with a huge amount of motivation quite a significant increase in the amount of exploration taking place in the country. When one looks specifically at the BCM you can see that here is a Secretariat that has evolved in line with the market and in doing so has managed to achieve an awful lot in what has been a relatively short space of time.

So, what continues to motivate you today?

I think the issue of growing the Chamber, providing it with strategic thinking and vision, has given me with a huge amount of motivation. I have gratefully received a lot of support from mining companies that

14 | BE mining

are members of the BCM, in particular its Executive Committee, who understand and appreciate the benefits that the Secretariat offers and are keen for me to pursue this mission. It is that kind of support that is giving me the motivation necessary to achieve even more great things through the work of the BCM.

What do you consider to be some of the bigger achievements of the BCM during your time as CEO? I think it is the growth of the Chamber itself. When I took over in 2010 there were no more than nine members,

executive insi ht whereas now there are closer to 30 and still growing. That to me is proof that our talking to companies about what we can do to support their efforts in Botswana is really paying off. This is in turn creating a snowball effect in which more parties and groups are approaching us to enquire about future membership.

How would you personally like to be remembered when people look back on your time as CEO of the BCM? My first goal was to establish from ground level a functional and successful Secretariat for the BCM. With that achieved my own personal mission now is to help kick start the next quantum leap for our country, which we plan to achieve through the development of Botswana’s coal reserves. If I can establish this industry sector successfully while assisting in the development of the necessary infrastructure to deliver the levels of tonnage that we are currently thinking about then I will consider my work complete and can retire a very happy man indeed.

Charles Siwawa is the CEO of the Botswana Chamber of Mines. The Botswana Chamber of Mines is an organisation established to serve the interests of the mining and exploration companies operating within the country, together with associated industries. www.bcm.org.bw

do you have something to say?

We’re always looking for new executives to feature.

Get in touch to share your story with us...

editorial@bus-ex.com BE mining | 15

EVENTS

leading investm

T

he Mongolia Investment Summit attracted over 200 delegates alongside 18 exhibitors. Nearly 50% of registered delegates came from the Western Hemisphere investment community, showing that despite recent challenges in Mongolia the investment interest is still strong. A large attendance from investors alongside many Mongolia organisations seeking investments ensured there was a great mixture of delegates at the conference.

The event had a positive feel and outlined a clear direction towards improving the

investment climate in Mongolia. Positive announcements were made by Vice Minister Chuluunbat about government policies and in particular about changes to the strategic foreign investment law. The Vice Minister was joined by a number of other keynote speakers including: • Zoljargal Naidansuren, Governor, Central Bank of Mongolia • James Passin, Co-Founder and Manager, Firebird Management • Randolph Koppa, President, Trade and Development Bank of Mongolia • Cameron McRae, President and CEO, Oyu Tolgoi Key features of the conferences: • 43 speakers over three days covering all aspect of investment into Mongolia from mining to real estate, infrastructure and capital markets • The London Stock Exchange invited key emerging market investors to attend to event who had meetings with important Mongolian companies

16 | Be mining

ment in mongolia

• T he event had 10 supporting media organisations and 4 supporting associations: Reuters, Bloomberg, Bloomberg TV Mongolia, Mining Journal and BE Mining amongst others reported on the conference

sponsored a traditional afternoon tea held in the presence of UK Trade and Investment Minister Lord Stephen Green in the Houses of Parliament which was attended by a number of conference delegates, the Vice Minister for Economic Development and the Governor of the Central Bank.

• The Conference has 2 platinum, 5 gold and 2 silver sponsors • The week saw private dinners, receptions and meetings hosted around the conference. Notably Resourceful Events

For more information about The Mongolia Investment Summit visit: www.mongoliainvestmentsummit.com

Be mining | 17

Marlin Mine:

Sustainable o

Through its Marlin Guatemala, a subsi to ensure the count

18 | special focus

Goldcorp - Marlin Mine

opportunities

n Mine operations, Montana Exploradora de idiary of the Canadian firm Goldcorp, is working try will soon be able to unlock its potential

written by: Will Daynes research by: Candice Nice

special focus | 19

Panoramic view of the processing plant

Goldcorp - Marlin Mine

P

ossessing a land mass of almost 109,000 square kilometres, the Central America country of Guatemala shares its borders with Mexico, Belize, Honduras and El Salvador, as well as the Pacific coastline to the Southwest and a part of the Caribbean coastline to the east.

Boasting a diverse history, a rich and distinctive culture, and areas of immense natural beauty, Guatemala has, in more recent times, become just as well known for its enormous gold potential. Indeed in 2007 one mine alone processed some 1.7 million tonnes of mineral with an average gold content of 4.55 grams per tonne and 84.31 grams of silver per tonne, further confirming the country as a mining destination of particular interest.

Possessing a stable, macroeconomic backdrop, Guatemala is fast earning a reputation as having perhaps the greatest future mining potential of any Central American country. Other factors that are helping to attract the interest of international investors include the free movement of goods and trade, and a local labour force with a reputation for being hard working, fast learners.

Spanning the boundaries of the San

“Guatemala has the greatest mining potential in Central America� special focus | 21

MARLIN MINE GOLDCORP

KAESER COMPRESSORS Tough screw compressors and the right technical support are the true solution in Central Americas Mines.

When integral and reliable solutions are required, in compressed air, Kaeser is the best answer. This is the case in Mina Marlin in Guatemala.

Mina Marlin operates through Montana Exploradora de Guatemala which is a subsidiary from Goldcorp (Canada) and being in production since 2005, with yearly average of 250,000 ounces of gold and 3.5 million ounces of silver, with reserves of 2.5 million ounces of gold and 36 million ounces of silver.

The mine is located in the department of San Marcos, 271 km from Guatemala City, but it takes 5 to 6 hours to get there by car from the city due to the last 20 km of dirt road.

Mina Marlin has today basically two mining stages: Underground mining: with a ramp 4.6 m wide and 4.9 m high for 20 tons dump trucks, and tunnels with pipes for compressed air, water, ventilation ducts and electric cables.

Process: until sodium cyanide leaching to separate the gold and silver minerals from the rocks, with cyanide destruction facilities to prevent and guarantee environmental and human hazards.

Although this is not the normal industrial environment, Kaeser compressors generate the compressed air, in Mina Marlin, for the blast process and for the ventilation tunnel drilling. We can find, for example, a Kaeser DSD175 compressor, installed at a depth of 350 meters, at 40 °C ambient temperature with lots of mine dust in the air.

Nevertheless, it is not only about really heavy duty equipment. “Kaeser made the difference due to their accompaniment, the installation, application and technical support”, as the mine superintendent engineer said. The system users are satisfied with the Kaeser compressors operation, thanks to their reliability, high volume delivery capability running at low rpms, and because they are very compact units that can perform in very harsh environments. The support and technical consulting have been keys to the daily improvements in the compressed air system in the mine. According to the mine manager: “No other company has provided us with such a complete technical consultancy”, exclaiming after the compressed air audit presentation, performed by Kaeser, in the mine. This as a mandatory task in order to really provide an excellent support, added to the close aftersales service and maintenance, supplied from the Kaeser subsidiary in Guatemala. www.kaeser.com.gt

BE WEEKLY | 1

Goldcorp - Marlin Mine

Mine entrance

Miguel Ixtahuacรกn and Sipacapa, located the Ministry of Energy and Mines of in San Marcos, the Marlin Mine was Guatemala into issuing a licence for the originally discovered in 1998 by two development and operation of the Marlin project, on 27 November Guatemalan geologists.

2003.

Follow ing t he Acquired in July 2002 by Canadian Company Glamis successful completion of Gold, it was they who, in the construction phase in conducting an exploration the third quarter of 2005, study, determined that the mine began producing the mine held a projected gold and silver before Gold recovery rate 1.4 million ounces of gold. the turn of the year. from the mine This projection spurred During the three years

98%

special focus | 25

MARLINMine MINE Goldcorp - Marlin between Marlin Mine 2003 feature and 2006 text tempor incididunt ut labore et dolore magna aliqua. Ut ap to pgo r oxhere....Lorem i m at e l y ipsum $300 enim ad minim veniam, quis million dolor sit amet, was consectetur invested nostrud exercitation ullamco iadipisicing nto t he elit, op er sed atordo ’s laboris nisi ut aliquip ex exploration eiusmod tempor activities incididunt and ea commodo consequat. overall ut laborepreparations et dolore magna for Duis aute irure dolor in exploitation. aliqua. Ut enim It ad wasminim then reprehenderit in voluptate in veniam, 2009 that quis Goldcorp nostrud invested an ullamco exercitation additional laboris $69 velit esse cillum dolore million nisi ut aliquip into ex theeaoperation, commodo eu fugiat nulla pariatur. with a similar consequat.

Duisfigure aute being irure Excepteur sint occaecat ploughed the business dolor in into reprehenderit in This is a caption this is a caption cupidatat non proident, sunt in 2010. Such Goldcorp’s in culpa qui officia deserunt voluptate velitisesse cillum commitment to nulla the longipsum dolor plant dolore eu fugiat pariatur. Excepteur mollit anim id est laborum. LoremSmelting termoccaecat success of the project sint cupidatat non proident, sunt sit amet, consectetur adipisicing elit, sed do that in culpa it intends qui officia to deserunt invest a mollit further anim $150 id from eiusmod such tempor investment incididuntand ut labore commitment et dolore million est laborum. into Marlin LoremMine ipsum bydolor 2014.sit amet, however. magna aliqua.

Indeed Ut enim the ad ripple minim effect veniam, created quis consectetur adipisicing elit, sedisdo eiusmod by nostrud this has exercitation spread throughout ullamco laboris businesses nisi ut It is not just the mine that benefiting

Brenntag brings to the Mining Industry a broad line of chemical products as well as alliances with both local and internationally known suppliers. With over 100 years of business experience, we are well positioned to provide customers with a diverse array of quality products and services at competitive prices.

In addition, we have an unparalleled ability

to support our multinational customers with Brenntag’s globally-based organization.

With distribution and sales locations throughout the United States, Canada, Europe, South and Central America, Africa, China, Australia and New Zealand, we are capable of meeting the needs of customers… from commodity to niche market products in a broad range of packaging containers and sizes.

Our product portfolio includes an extensive line of chemicals for use in different applications throughout the mining operations, including flotation, dust control, solvent extraction and water treatment. www.brenntag.com

special BE WEEKLY focus | | 272

Atlas Copco specialises in providing equipment and solutions to companies involved in mining, rock excavation and construction. We develop, manufacture and sell services related to underground and surface rigs, underground haulage and transport, crushing, anchors, jet grouting, drill steel, exploration and a full range of parts and consumables.

Operating within the marketplace for 140 years, Atlas Copco is continuously looking to innovate in order to achieve sustainable productivity in the fields of surface and underground mining, infrastructure projects, deep drilling, geotechnical applications and civil works.

El área de negocios Mining and Rock Excavation Technique de Atlas Copco provee equipos y soluciones para construcción y minería. Desarrollamos, fabricamos, comercializamos y ofrecemos servicio técnico para nuestros equipos de perforación subterránea y de superficie, acarreo y transporte, trituración, anclajes, inyección de cemento, aceros de barrenación, exploración así como una gama completa de partes y consumibles.

Con 140 años en el mercado, en Atlas Copco innovamos continuamente para lograr una productividad sustentable en la minería subterránea y de superficie, en proyectos de infraestructura, perforación profunda, aplicaciones de geotecnia y obras civiles.

For the attention of Central American and Caribbean countries.

Atlas Copco Central America S.A. Panamerica Corporate Center Edificio 9080, Local #3, Boulevar de las Americas, Panamá Pacífico Ciudad de Panamá, Panamá Tel:+507 8306155 / 56 / 57 Fax:+507 8306160 www.atlascopco.com

Goldcorp - Marlin Mine

Local workers

in the local community with Marlin Mine today having more than 1000 suppliers, a figure that is helping to generate contracts worth over $907 million.

“One of the first things we recognised about this mine and what makes it so

unique,” explains Marlin Mine General Manager, Christian Roldan, “is just how well the ore itself responds to metallurgical treatments. When it comes to gold we have extremely high recovery rates of about 98 percent recovery and more than

“One of the first things we recognised about this mine and what makes it so unique, is just how well the ore itself responds to metallurgical treatments” special focus | 29

buildings • bridges • warehouses • mezzanines • industrial buildings shopping centers • special structures • civil works • pipes

MARLIN MINE, GOLDCORP 2011

MINERA SAN RAFAEL, TAHOE RESOURCES 2013

MINERA SAN RAFAEL, TAHOE RESOURCES, 2013

Guatemala | El Salvador | Honduras | Nicaragua | Costa Rica | Panama | Belize

Goldcorp - Marlin Mine

Exterior view of the water treatment plant

90 percent for silver. We also benefit from the fact that Marlin is located in a very strong mining district where, to this day, we continue to uncover new resources

around the main Marlin vein.”

Average annual production at the mine is today estimated as being 250,000 ounces of gold and around 3.5 million ounces of silver, with current reserves exceeding 2.5 million ounces Aceros Arquitectónicos of gold and 36 million Aceros Arquitectónicos, Grupo Ferroso S.A. is a company ounces of silver. In the five fully dedicated to the Manufacture and Assembly of Steel years between 2005 and Works. With 50 years of experience, we also focus on 2010 it has been calculated Civil Works and turnkey arrangement projects. Clients that some 1.2 million ounces like GOLDCORP, SOLEL BONEH, SAMUEL ENGINEERING, of gold, equivalent to over ENEL, etc. have made our operation renowned worldwide.

Structural engineers specially trained in designing metal $1.1 billion, that originated structures have the necessary equipment for structural from the mine was exported analysis and design, using specialized software such along with 18.2 million as STAAD Pro Ver 8, the most widely accepted program tonnes of silver, which in the world. There are a total of 220 employees in the generated $299.3 million in manufacturing area and 25 people in the technical area, export revenues. supervision and administration.

The production process www.acerosarq.com of the Marlin Mine is

special focus | 31

Procesadora de Minerales, S.A. –PROMISA- is a Guatemalan based company founded in 1971. We are the main suppliers of nonmetallic minerals to different industries, but also share our experience, technology, services and knowledge with the mining business.

Our main objective focuses on supporting our clients, which include Marlin Mine-Montana Exploradora/GoldCorp Guatemala, with high standard products, on site engineering services and training and tools aimed especially for mining processes, thus minimizing ecological and local community liabilities, and ensuring business sustainability.

We represent MI-HDD Mining & Waterwell, a MI-SWACO Division, as well as Diamantina Christensen Mining Products, known worldwide for its high efficiency drilling fluids, bits and tools, additives, products and equipment that increase the productivity of operations and reduce environmental footprint and fluid consumption.

Our products:

• Bentonite • Drilling Fluids formulated for both small and large borehole stability and core quality • Polymers • Fluid Loss Control Agents • Shale Stabilizers • Viscosifiers • Filtration Control Additives • Lubricants • Drill Bits and Tools

www.promisa.biz | info@promisa.biz (502) 23366696 | fax (502) 23366705 Guatemala City, Guatemala

Goldcorp - Marlin Mine divided into four phases, these being exploration, As miners go deeper underground to provide the materials construction, operation and on which the world depends, they need safe, reliable production, and technical equipment designed to handle demanding conditions. From closure and reclamation. “At the first cut to the last inch of the seam, we’re committed to present,” Roldan continues, meeting the needs of customer in every mining application “there are three main and environment. Our broad product line includes drills, loaders and trucks for hard rock applications, and underground areas that precision-engineered products. Since the beginning of we are mining. In order to Montana’s operation (Gold Corp Mine in Guatemala), extract the full potential of Gentrac has provided equipment, parts and services as what the mine has to offer support in their mining operation. Gentrac is grateful to we have had to overcome Marlin Mine for the confidence given. a number of challenges. www.gentrac.com.gt T hese have included creating ventilation systems for both on-going and future underground activities and establishing strong water controls around the mine site.”

Strong environmental controls have been a feature of the mine site since it first opened. Today these controls include the use of emergency response teams that are on call at all times of day to respond to all manner of events. These include responding to signs of increased sodium or sulphite levels in the surrounding water network or dealing with any issues that may arise during the transportation of hazardous materials. Such is the skill of

GENTRAC

1.4 million Ounces of gold Marlin Mine is estimated to hold Water treatment plant

special focus | 33

We at Ingenia are highly qualified in all areas of electrical engineering, industrial and mining projects.

We are a company known for its core values, such as honesty, long term relationships, honesty and respect for our customers, suppliers, employees and to our country.

• Counseling • Design • Electrical Installation • Mechanical Installations • Project Management • Turnkey Projects • Power Quality Studies • Armed electric panels • Electrical Audits We meet the needs of our customers, so if electricity is your thinking we are your best choice, contact us: PBX: (502) 2499-4444 | FAX: (502) 2499-4401 | www.ingenia.com.gt

Goldcorp - Marlin Mine

the mine’s emergency teams that they were even called in to assist in the rescue and recovery efforts that followed the earthquake that struck the San Marcos area in November 2012.

In 2012, Montana Exploradora de

Guatemala commissioned the building of a tail filtering plant near to the mine.

The concept for the plant came about as a solution to how the operators could reclaim the open pit section of Marlin Mine that is no long in operation. The plant’s core

“Marlin is located in a very strong mining district where, to this day, its operators continue to uncover new resources around the main Marlin vein” special focus | 35

This is a caption this is a caption

Goldcorp - Marlin Mine function today is to dry the tailings from the mine in order for them to be used to fill pipes and cover the decommissioned pit wall in order to avoid further erosion or drainage.

The immediate future of Marlin Mine revolves around what Roldan calls an extensive aspiration programme. “We presently have a number of aggressive exploration programmes underway in many areas of the district surrounding the mine and we have been greatly encouraged by the results we have seen. This gives us great hope for extending the Marlin Mine network further into these parts of the region.”

In the meantime the operators also remain committed to setting a strong example of what responsible modern mining can bring to the country in the decades ahead, “On average,” national executive director, Mario Marroquin concludes, “mining in countries such as Chile and Peru accounts for as much as 12 percent of their annual GDP, while here in Guatemala that figure is more like two percent. If we were able to bring this up to just six percent, I believe the results of that would be more than enough to convince a great deal more people to begin accepting the industry and help them realise just how many positive benefits a strong, responsible mining sector could bring to the country.”

For more information about Goldcorp - Marlin Mine visit: www.goldcorpguatemala.com

special focus | 37

Marlin Mine:

Supporting development The legacy left behind by Marlin Mine in Guatemala is something of huge importance to its operators, Montana Exploradora de Guatemala, and is what drives its work in the field of corporate social responsibility

written by: Will Daynes research by: Candice Nice

38 | special focus

Goldcorp - Marlin Mine

special focus | 39

Area of environmental recovery

Goldcorp - Marlin Mine

L

ong before it commenced operations at its Marlin Mine asset, Goldcorp made a commitment to not only respect the cultural values of the local communities of San Miguel and Sipacapa, but also to support the sustainable development of the area.

It remains the company’s aim to seek out and establish strategic alliances throughout the region in order to promote its dedication to improve the lives of the local population and generate sustainable prosperity that lasts beyond the lifetime of the mine.

The operators of Marlin Mine, Montana Exploradora de Guatemala, a subsidiary of Goldcorp, are very much pioneers within the country of Guatemala. “We have known since day one,” Marlin Mine General Manager, Christian Roldan says, “that by being situated on indigenous land it has been fundamental to build strong relationships with local communities. By sitting down and listening to their concerns and needs we quickly found that job creation was a big issue for them. Today we are proud to say that approximately 90 percent of our workforce is Guatemalan, with 60 percent of these being people from the local area.”

Being a 24 hours a day, 365 days a year type operation, logistics is a hugely vital ingredient in the mines success. Once again the local community has become a major strategic partner in this area of the business. “We take great pride in the fact that over 68 percent of our suppliers are local providers,” enthuses materials manager, Pedro Richmagui.

special focus | 41

Keeping your world up and running

Fluke has the right tool for surface, underground and process on the mine Clamp Meter

Process Calibrator

PBX: 502-23695000

Diagram is not an exact physical representation. Diagram elements are not to scale and are for illustration purposes only. Modification of this document is not permitted without written permission from Fluke, Š 2010 Fluke Corporation. Reproduced with permission.

CNX Wireless

Power Quality and Energy Analyzer

www.conpro.com.gt

Thermography

Vibration

ventas@conpro.com.gt

Goldcorp - Marlin Mine In getting to this position, conpro the mine operators have We are a Guatemalan company with 18 years of experience worked tirelessly to develop serving the industrial power market in Central America, local businesses and to through the representation and distribution of global improve their understanding brands, leaders in each of its segments. We provide of mining and how it solutions in measurement equipments, distribution will become even more equipments for low and medium voltage, transformers built under design, electrical enclosures, cables for special important to Guatemala in application, and lighting fixtures. The wide range of the years to come. “A good options offering with the support and the guarantee of the example of our work in this companies we represent, along with the knowledge of our field,” Richmagui continues, sales force. “is how we have helped We have provided Mina Marlin electrical equipments along develop local transport with technical training for power quality, process calibration companies, bringing them and, certified Level 1 thermography for maintenance and operation in the underground and process areas, to keep up to a level of operational the mine up and running. excellence that means that www.conpro.com.gt when the day comes that the mine is no longer in operation the community is left with a strong enterprise that can then pitch itself to other organisations.”

While local communities have already experienced the benefits that mining can bring to the country, the perception of mining amongst the wider population of Guatemala remains somewhat divided. It is for this reason that the operators of Marlin Mine continue to make a concerted effort to bring people, groups and agencies together in order to highlight how a prosperous Locals prepare trees for planting

“Strong environmental controls have been a feature of the mine site since it first opened” special focus | 43

Proud to be Operating for Excellence with Goldcorp at Marlin Mine.

With over 20 active projects across two continents, Dumas brings ingenuity and expertise to some of the world’s most challenging underground mines.

www.dumasmining.com Toronto | Timmins | Val-d’Or | Guatemala | Chihuahua | Lima

Goldcorp - Marlin Mine mining industry can benefit Guatemala in the long term.

A trusted partner of Goldcorp since 1990, and onsite “While there is a large at Marlin Mine since February 2011, Dumas is proud number of people who to be aligned with every pillar of Goldcorp’s Operating support what we are doing for Excellence philosophy. For example, supporting the and understand the vital Grow Safety element, implementation of Dumas’ world role that mining has to play class safety program has resulted in 560,000 man hours with no LTIs at Marlin as of March 2013. Other in enhancing the economy elements of Operating for Excellence are demonstrated of a country by means of by consistent performance increases achieved by Dumas, greater investment and and a commitment to training and employing locally – revenue flows, one of our Guatemalans represent 76 per cent of Dumas’ workforce in core missions is to help instil the country. this belief in the rest of the www.dumasmining.com population of Guatemala,” states national executive director, Mario Marroquin. “This was never going to be a quick process, however trends do suggest that support for mining is slowly growing.”

While support for mining continues to build, other challenges lay ahead for Marlin Mine’s operators, in particular the question of what kind of legacy the mine will leave behind once it has closed. This is a question that has been posed not only to Montana Exploradora de Guatemala, but also to Guatemala’s local politicians and its national government.

“In planning for the future of the

DUMAS

10,000 Direct and indirect jobs created by the mine.

Reforestation in progress

special focus | 45

T H E E X T R AC T I O N O F G O L D A N D S I LV E R With Guatemala having many valuable natural resources, Productos del Aire can highlight the extraction of gold and silver, among others.

M.Sc. Juan Ram贸n Pallais | Special Applications Advisory | Guatemala Air Products, Inc. jrpallais@productosdelaire.com | Phone 2421-0400 Ext. 227

Overland Conveyor, Marlin Mine, GoldCorp, Guatemala

IGC covers virtually all types of services in various areas of engineering and construction. Our main focus began in the electrical-mechanical engineering and construction field. In 1992 IGC implemented a civil work division, due to the growth in the Central America industry. In 1998 the Operation & Maintenance division for thermal power plants was created. IGC basically ensures the coordination of local engineering, constructors and administration.

PBX (502) 66 44 18 00 grupoigc@grupoigc.com www.grupoigc.com DELIVERING INTELLIGENT SOLUTIONS TO THE CENTRO AMERICAN INDUSTRY SINCE 1970

Goldcorp - Marlin Mine

68% Of Marlin Mine’s suppliers are local providers

Productos Del Aire

We use a multi-stage process: first extract large amounts of land where the mineral is present then grind until a fine grain, where chemically separating the mineral soil in a process called Leaching. (Dissolving a metal in a liquid, such as water to separate the soil, so that the mineral suspension while floating on the ground or precipitated to the bottom of the tank) This is due to a chemical equation: Gold: 4Au + 8CN-+ O2 + 2H2Og4Au (CN) 2 - + 4OHSilver:4Ag + 8CN-+ O2 + 2H2Og4Ag (CN) 2 - + 4OHThey can be summarized as follows: Mineral + Cyanide + Oxygen + water - Mineral water soluble!

Finally this liquid with the precious metal is separated, and by another chemical reaction is precipitated mineral and melts the ingot ready for marketing.

E. jrpallais@productosdelaire.com

area around the mine,” explains corporate social responsibilit y director, Gustavo Cabrera, “we are looking at a host of factors, from ensuring the long term wellbeing of the local communities to making sure that they have the tools needed to bring economic activity to the area after we have gone. On-going efforts involve closing the gaps that exist in education, healthcare and

employment in order to boost the economy.”

Montana Exploradora de Guatemala has played a big role in various social development projects for the better part

The education complex

special focus | 47

RELIABLE SOLUTIONS FOR THE MINING WORLD Prodac´s Mining Unit specialises in providing solutions to rock mass stabilization in tunnels. For this purpose, we have quality products and professional staff in geo-mechanics, explosives and operations, that can provide technical advice and on site training.

Telephone: 51 (1) 613 6666 mineria@prodac.com.pe www.prodac.com.pe

Goldcorp - Marlin Mine of a decade, particularly in the fields of infrastructure, Tritech has been helping industrial customers for more education, productivity, than 40 years. With its origins in Guatemala distributing community relations and the brand Molub-Alloy (now within Castrol Industrial), the healthcare. Through its company has grown into a multinational company serving Sustainable Development the industrial sector from Mexico to Colombia. Focused only Department it has executed on lubrication, we have brought also automated lubricating systems, filtration and most important knowledge into our over 2,000 community offer so we can give documented savings to our customers. development interventions Our relationship with Marlin Mine started in 2005 with a and more than 150 detailed lubrication plan, training, implementation and close projects that have directly follow up in site. To this day we keep these tasks to ensure supported new and existing the best results possible. infrastructure found among www.tritechoverseas.com the local communities.

While Guatemala is slowly making positive steps towards greater social and economic prosperity the country does still suffer from significant shortcomings when it comes to education and healthcare, a fact that has long been a major obstacle in raising the rate of national productivity. Montana Exploradora de Guatemala understands that education is the cornerstone in the development of communities and as such it has striven to support the building and development of schools, school kitchens, computer centres and sports parks. To date the company has driven almost 300 initiatives Education in the local communities that share the same goal of improving

Tritech

“Montana Exploradora de Guatemala has made sure to integrate Goldcorp’s Environmental Policy into its Marlin Mine operations� special focus | 49

Quisertec, is a Central American Company with its central offices in Guatemala that offers a wide variety of lines of raw materials directed to the productive sectors of the region for the following sectors: • Food industry • Cosmetics • Pharmaceutical • Bottling • Mining Industry • General Industry In each of the countries in our market area, we have offices, warehouses and highly qualified staff to meet the needs of our customers, permanently keeping a stock of different products.

Quisertec would be happy to meet any requirement, as our sales policy is what sets us apart from our competition.

Visit our web page www.quisertec.com Tel (502) 23801300 | email ventas@quisertec.com

“Your best partner, in any business”

STEEL

I N D U S T R I A L S E RV I C E S

Steel Industrial Services is a company dedicated to designing, manufacturing and rebuilding of parts for mining equipment and the industry in general.

Services: • Installation of equipment • Manufacturing equipment of various structures • Repair and maintenance of various equipment • Welding • Maintaining different types of pumps and motors • Tool Supply • Contractor technicians in the fields of mechanics, welding and electricity • Electrical services Telephone: 00502 7840-3497 E-mail: servicios.industriales_steel@yahoo.com

Goldcorp - Marlin Mine the education standards Quisertec and experiences of those Quisertec, SA belongs to a group of 15 companies based within the municipalities in Central America focused on different activities in of San Miguel, Sipakapa, commerce, industry, services and agriculture. Quisertec, Malacatancito and Tejutla.

SA was founded in Guatemala in 1990 with the mission In terms of the help to provide complete satisfaction to our customers in the mine’s operators have our different areas of action. Achieving profitability for our customers, employees, suppliers and shareholders. provided ≠≠towards the Through personalized service and quality products and improvement of healthcare services. Represented in the area major manufacturing in the region it has aided in companies from 5 continents. the building and equipping www.quisertec.com of the Permanent Attention Centre (CAP) in San Miguel.

The creation of the CAP is a prime example as a responsible corporate citizen. of Goldcorp’s Sustainable Prosperity The CAP is today seen as an example of programme being put into action, assisting partnership between sectors. In addition in the company’s mission to be recognised to the efforts of Montana Exploradora de

Exterior of the CAP centre

special focus | 51

“Excellence in quality and service�

We have more than 30 years of experience in the design and manufacture of filter elements

Filter elements: Band filters, Rotary Vacuum Filters, Filter Presses, Dust Collectors

Forjas Santa Barbara, S.A. Barrio Oguena s/n, Apartado 49, Amorebieta - Spain Tel: +34 946 730 737 Email: forjas@fsantabarbara.com www.fsantabarbara.com

G R I N D I N G

M E D I A

Materials: Polypropylene, Polyester, Nylon, Aramid, Polyimide, PPS, Fibreglass Our products are manufactured in compliance with the requirements of each process. www.mfisa.com.mx

Goldcorp - Marlin Mine MULTIGROUP

MultiGroup is an industrial-commercial corporation that has more than 26 years of experience with in North America, Central America and the Caribbean.

We manufacture and commercialize a wide range of steel products. Our main strength is having three, first-class production facilities that allow us to manufacture according to the needs of our customers and in compliance with international standards.

We supply welded mesh for the Marlin Mine, which is used for structural reinforcement of the walls of their tunnels.

MultiGroup, has its own hot dip galvanized plant, which can offer all products on galvanized finish, in order to serve the industrial segment and specialized factories.

The product portfolio includes many steel products such as steel sheets, steel plates, foundation bars, beams, steel tubing, pipes, structural tubing, conduit pipes, roofing sheets, steel rods, welded mesh and drywall accessories. www.multigroup.com.gt

New operating theatre

Guatemala, the municipality of San Miguel provided the land and the Ministry of Health remains responsible for its operation and good performance.

The centre itself is equipped with the very latest technology that is used in a range of medical fields. The investment that all parties have made in the CAP means that today local Guatemalan communities are able to access better health care than they could previously receive.

In its role as a responsible mining company, Montana Exploradora de Guatemala has made sure to integrate Goldcorp’s

99% Of the water used at Marlin Mine is recycled and reused in other areas of the mining process Tilapia fish project

special focus | 53

Underground safety that goes beyond bolts, plates and resin.

In addition to being the leading manufacturer of resin cartridges for more than 40 years, Minova is a global leader in chemical and steel based consumables, associated equipment and services for rock bolting, ground consolidation, ventilation and water control for the underground mining industry.

These are just a few of the many products in the Minova family of innovative safety solutions: AirtiteÂŽ fiber-reinforced pre-mixed coatings for use on stoppings, overcasts and other ventilation controls.

Carbothix instantly thickening, fast curing injectable two-component silicate resin for sealing bolts.

Tekcrete Fast M low dusting, ultra-rapid hardening, high-strength gunite.

Ground Support Systems

Minova Mining Services, S.A. | Lo Echevers 300 | Quilicura, Santiago | Chile +56 9 9918 1878 | www.minovainternational.com

Seen Sika AG, Switzerland, is a globally active specialty chemicals company. Sika supplies the building and construction industry as well as manufacturing industries (automotive, bus, truck, rail, solar and wind power plants, façades). Sika is a leader in processing materials used in sealing.

The Sika target markets are: concrete, waterproofing, roofing, flooring, sealing and bonding, refurbishment and industry.

Contact us today and put your company in the spotlight! www.sika.com

vincent@bus-ex.com

Goldcorp - Marlin Mine Environmental Policy into MINOVA Ground Support Systems its Marlin Mine operations.

Part of Orica Limited, Minova is a leading global provider As part of this policy the of ground support and ventilation products used in operators are committed to underground mining. the responsible use of water, Minova manufactures mechanical, structural and chemical waste management, carrying based solutions for underground mining, infrastructure, out regular environmental tunneling and civil engineering applications.

Since 1970, Minova has offered a wide range of products monitoring, reforestation, and services for rock bolting, ground consolidation, promoting environmental fiberglass reinforcement, ventilation and water control. education and the reclamation Orica’s operations are in 50 countries, on six continents, of mined areas. meeting customers’ productivity, efficiency, safety and A sophisticated closed environmental challenges globally. circuit system means that www.minovainternational.com approximately 99 percent of the water used at Marlin Mine is recycled and reused in other areas of back for reuse. There are two water treatment the mining process, while processed water, plants in the vicinity of the mine itself, one of or sludge, is treated onsite before being which treats aerobic sewage while the other discharged into the tailings and then pumped processes it into tunnel water that is then

Nursery environment

special focus | 55

E-Mail: info@netcoretechno.com www.netcoretechno.com

ALL IN TECHNOLOGY FOR SURVEYING AND GEODESY • Netcore Technologies is a solutions integrator company for different fields and applications covering the Geodesy and Survey fields.

• We have a group of market leading brands to complement and accurate solutions that meet the needs of industry.

• In Netcore Technologies have experience at regional level for several solutions.

Working with large corporations in field solutions and equipment.

• As representatives of Trimble, a world wide leader in GNSS solutions, we have helped many organizations and countries in Central America to solve their needs in GNSS systems.

“WE ARE A CENTRAL AMERICAN COMPANY IN EXPANTION, LOCATED NOW AT GUATEMALA, EL SALVADOR AND PANAMA.”

Goldcorp - Marlin Mine safe to release back into the environment.

EVERLIFE is a Guatemalan company, founded in 2004 Montana Exploradora de with the mission to provide advice and consultancy in Guatemala has worked hard environmental, social and business management. Today, we to establish and implement serve several of the largest and most important companies regular environmental in there sector. We are conformed by a multidisciplinary monitoring programmes that team of professionals with extensive experience in extractive industries, renewable energy and transmission take place around Marlin and distribution of electricity.

Mine. These programmes We know our business and we know how vital this is for look to identify and monitor yours, so we offer integral solutions with the highest terrestrial and aquatic professionalism and quality, supported by the use biological resources and of ultimate technology and equipment approved and wildlife with the aim of helping recognized by international environmental agencies. to maintain Guatemala’s www.everlifegt.com ecological balance.

Soi l mon itor i ng is conducted annually to identify vegetation, macronutrients and nematodes, samples of which are in turn analysed at the laboratories of agronomy at the University Of San Carlos Of Guatemala. Meanwhile, studies of local flora and fauna are conducted by teams of ornithologists, mammalogists, herpetologists and entomologists in order to catalogue species of plants and animals and monitor their respective

EVERLIFE

300

hectares Amount of land Montana Exploradora de Guatemala has helped in the reforestation of to date Livestock project

special focus | 57

www.crelosa.com

• 2012 Biggest HYTERA Distribuitor in America • First DMR Tier III Trunking Operator in America • Wide area Digital Network • Vehicle Fleet Monitoring System with GPS

• Construction and Installation of communication Towers • Rent of DIGITAL radios • Sale and Installation of CCTV equipment

At Soiltec we specialize in the following areas: • Soil Nailing • Foundations • Marine Works • Industrial Works • Civil Works • Large Capacity Storage Domes • Soil Improvement Visit us at www.soiltec.com.gt

Goldcorp - Marlin Mine population numbers. crelosa To date Montana • Repair everything related to radio equipment.

Exploradora de Guatemala • Diagnosis office equipment without cost and scope of the has helped in the reforestation capital (applies departmental cost varies by region). of more than 300 hectares of • Vehicle Fleet Monitoring with GPS. land in the municipalities of • Construction and installation of towers.

San Miguel and Sipakapa, • Consultancy on special projects.

• Rent of TEAM radio communication. while more than 50 hectares of • Sale and installation of CCTV equipment . land was reforested between www.crelosa.com the two municipalities in 2011 alone. Indeed the operators are playing a core role in one of the Guatemalan government’s most important environmental schemes, that being the Forest Plan. The aim of this plan is to reforest an area of 199.5 hectares, of which over 100 hectares have already been covered.

From a social perspective, Montana Exploradora de Guatemala’s track record in recent years for generating local jobs cannot be disputed, what with some 10,000 direct and indirect jobs created through the mine’s operations, however it is aware that the task at hand now involves building up the capabilities of these same people in preparation for when the mine does close and the possibility that alternative employment may be required.

“One of our responsibilities, as we see it, is to provide our local employees and communities with the skills and expertise A local farmer

“One of our responsibilities, as we see it, is to provide our local employees and communities with skills that they’ll need to take on other roles in the future” special focus | 59

Reforestation panorama

Goldcorp - Marlin Mine that they will need to take on other roles in the future, both inside and out of the mining sector,� Cabrera highlights. “We know, for instance, that the land around the mine has great agricultural potential.

Therefore, what we have been doing is working to establish relationships with big businesses such as Wal-Mart in Guatemala and in Mexico in the hope of creating a scenario in which local Guatemalan agricultural companies can one day earn long-term supplier contracts.�

On top of creating employment opportunities, Marlin Mine has also contributed hugely to the development of Guatemala through the paying of taxes and royalties during its lifetime. Indeed the operators of the mine are recognised today as being one of the biggest tax payers in all of the country.

The Mining Act of Guatemala specifies that for each mining operation, one percent of the total gross sales from the production of gold and silver must be divided equally between the government of the country and the municipality of San Miguel. In its near decade of activity in the country Montana Exploradora de Guatemala has been more than happy to contribute such royalties, the proceeds of which have already begun to create a long lasting legacy by funding crucial infrastructure improvements within the area and beyond.

For more information about Goldcorp - Marlin Mine visit: www.goldcorpguatemala.com

special focus | 61

company in brief Goldcorp Inc. (Goldcorp) is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico and Central and South America. As of December 31, 2011, its producing mining properties were consisted of the Red Lake, Porcupine and Musselwhite gold mines in Canada; the Penasquito gold/silver/lead/zinc mine, Los Filos and El Sauzal gold mines in Mexico; the Marlin gold/silver mine in Guatemala; the Alumbrera gold/copper mine (37.5% interest) in Argentina; the Marigold (66.7% interest) and Wharf gold

mines in the United States. As of December 31, 2011, its development projects included the Cerro Negro gold project in Argentina; the Eleonore and Cochenour gold projects in Canada; the Pueblo Viejo gold project (40% interest) in the Dominican Republic; the El Morro gold/copper project in Chile; the Noche Buena and Camino Rojo gold/silver projects in Mexico, and the Cerro Blanco gold/silver project in Guatemala.

MANAGEMENT AND DIRECTORS Ian W. Telfer

Charlene A. Ripley

Chairman of the Board

Executive Vice President, General Counsel

Charles A. Jeannes

Russell D. Ball

President, Chief Executive Officer, Director

Executive Vice President Capital Management

Douglas M. Holtby Independent Vice Chairman of the Board, Lead Director

Lindsay A. Hall Chief Financial Officer, Executive Vice President

George R. Burns Chief Operating Officer, Executive Vice President

62 | special focus

David L. Deisley Executive Vice President - Corporate Affairs

Timo S. Jauristo Executive Vice President Corporate Development

Colette Rustad Senior Vice President, Corporate Controller

goldcorp stock watch

Office Corporate Office Park Place Suite 3400-666 Burrard Street Vancouver, B.C. Canada V6C 2X8 Tel: +1-604-6963000 Fax: +1-604-6963001 Email: info@perseusmining.com

Exchange NYSE

Shares 811.99M

Symbol GG

Market Cap. 21.92B

Currency USD

Div/yield 0.05/2.22

financial highlights Gold production Production totaled 2,396,200 ounces for 2012, compared to 2,514,700 ounces in 2011.

Shareholder earnings Net earnings attributable to shareholders of Goldcorp totaled $1,749 million ($2.16 per share) for 2012, compared to $1,881 million ($2.34 per share) in 2011. Adjusted net earnings amounted to $1,642 million ($2.03 per share) for 2012, compared to $1,786 million ($2.22 per share) in 2011.

www.goldcrop.com

products • Gold

operating territories • Canada • United States

• Mexico • South America

Key stats and ratios

Q1 (Mar ‘13) 2012 Net profit margin 30.44% 32.18% Operating margin 31.23% 38.62% EBITD margin - 52.36% Return on average assets 3.90% 5.77% Return on average equity 5.44% 7.95%

Financial information from Google Finance and Thomson Reuters

special focus | 63

PBE Group

Safety first

Chief Executive Officer, Stuart Champion de Crespigny, discusses PBE’s transformation into an international mining solutions provider and the continued diversification of its product suite

written by: Will Daynes research by: Marcus Lewis

be mining | 65

PBE has extensive electronic manufacturing capabilities

PBE Group

E

ver since it was first established in March of 1971 by Frank Pyott and Roger Boone, PBE’s (Pyott-Boone Electronics as it was previously known) mission has been to design and build reliable, high tech equipment to improve mine safety and productivity.

Originally focused on supplying the US coal mining industry with the most technologically advanced communication and monitoring systems available, something for which PBE remains recognised as being a pioneer of, the company remained a regional leader in its field before, in April of 2011, it entered into a new era of growth and diversification.

This era was ushered in by the acquiring of the business by Prairie Capital V, LP and Vierville Capital and the arrival of Stuart Champion de Crespigny, founder of Vierville Capital, as Chief Executive Officer, who has focused his efforts on building the management team and taking the company global.

“The PBE that we acquired in 2011,” de Crespigny explains, “was very much a US coal focused business. While it unquestionably boasted an excellent product, it was a business that had never really looked at expansion beyond its home market. What we did upon our purchasing of PBE was to set off immediately along a path to increase and improve not only the internal structure of the company, but also its geographic reach.”

In March 2012, the company purchased the Australia business Minecom in a move which helped expand not only PBE’s product range in the communication systems space, but also its global reach.

be mining | 67

1971 The year that PBE was first established

Minecom Leaky Feeder device

68 | be mining

This acquisition was then followed up with that of Mine Radio Systems in February 2013. It was with this development that, in de Crespigny’s eyes, PBE became a truly international company.

“The reality is that the US as a marketplace does not possess the same amount of growth potential for us as a business as the developing international markets,” de Crespigny continues. This approach to global expansion has brought PBE to the point where today it possesses six international offices in the US, Canada, Mexico, South Africa, the UK and Australia, as well as several major distributors serving regions including South America and Russia.

For more than 40 years PBE has built itself a reputation for having a reliable, sophisticated product set and support network designed to improve the safety and productivity of a customer’s mine. As de Crespigny highlights, this played a hugely significant role when it came to raising capital to purchase the company.

“In today’s world,” he says, “there isn’t a person out there in the mining sector who doesn’t agree that safety is the most important factor in the industry right now, and will be of even more importance in the years to come. PBE envisioned this

PBE Group

The management team

being the case some time ago and with its large suite of products we are now in a prime position to service this growing market segment, particular as the industry continues to concentrate more of its efforts on protecting its most important resource, which is of course its people.”

From day one de Crespigny and his team have held the belief that the best way of transforming PBE into a global competitor

was to introduce its product portfolio to the rest of the world. Dubbing itself ‘the single intergraded source solution for mining productivity and safety’, PBE specialises in providing its customers with integrated, onestop-shop solutions to cover all of their safety and productivity mine-based needs from an electronic perspective.

During its early years PBE would have been involved in such initiatives as installing

“In today’s world there isn’t a person out there in the mining sector who doesn’t agree that safety is the most important factor in the industry” be mining | 69

hard-line telephones underground to provide a communications link from the mine to the surface. Obviously the industry has evolved hugely in the time since to the point where virtual every mine in the world possesses wireless connectivity between those deep underground and those above.

Today PBE possesses a raft of solutions, each of which has been manufactured for a different purpose from safety and control equipment and environmental monitoring systems to personnel and vehicle tracking software and data infrastructure networks.

With its patented MineBoss software system the company also has a product that is capable of monitoring every single

piece of mine equipment from one location anywhere in the world.

The latest development within the company involves the launch of a new product that incorporates the technologies behind proximity alert and collision avoidance systems. “This highly sophisticated system,� de Crespigny says, “uses multiple forms of technology independently developed by PBE to meet one of the most important challenges that mines face today and that is protecting people and assets from the potential damage that larger vehicles and equipment can cause.

This alert system is essentially a much more advanced form of that which can today be found in high-end automobiles and acts much

Screen shot of the MineBoss sotfware and tracking tag

70 | be mining

PBE Group

“we haven’t disconnected ourselves from the things that contributed to the company’s success in the past, but we have evolved as a business” in the same way by providing the operators of large vehicles with the tools needed to avoid what can be massively costly incidents and accidents above or underground.”

The first half of 2013 has seen the company continue its trend of appearing at numerous industry trade shows, conventions and exhibitions. Indeed with the new owners of

PBE having been in place for little over two years it is key that they attend most, if not all of the major mining events around the world simply to publicise the fact that the PBE of today is a different beast to that of years past. “PBE comes with a great deal of history connected to it,” de Crespigny highlights, “and while we want people to understand that we haven’t disconnected ourselves from the things that contributed to the company’s success in the past, we do want them to be aware that we have evolved as a business.”

It has always been PBE’s goal, both before and since its acquisition, to be the market leader in mining safety and productivity solutions. “While there is no doubt,” de Crespigny concludes, “that we have a number of capable competitors in our field, we are confident that our product suite and international expertise gives us the perfect base to realise our ambitions. We are well aware however that this is a marathon, not a sprint, but everything we have seen to date gives us great encouragement for the future.”

For more information about PBE Group visit: www.pbegrp.com

be mining | 71

company in brief The PBE mission has always been to design and build reliable, high tech equipment for mine safety and productivity. Four decades later that tradition continues as we provide mine wide monitoring and communications equipment all over the world.

The PBE MineBoss™ computer system is currently operating in over 300 U.S. mines, and products from our conveyor monitoring and controls, fixed gas monitoring, atmospheric monitoring, fire deluge, dust suppression and paging telephone lines are also installed in mining operations all over the globe.

PBE is proud to have as part of our range the Minecom VHF & UHF Leaky Feeder systems, which are installed in conjunction with our Tracking Boss Personnel Tagging system. PBE is also the largest Authorized Motorola Two-Way Radio Dealer in the U.S. coal industry. Not only are the Minecom leaky feeder and PBE tracking systems suited for post accident applications,

they serve as superior productivity tools.

Instantaneous two-way voice and up to date tracking keep all mine personnel in constant contact. Lost time on maintenance issues and searching for parts or key personnel is a thing of the past.

As your “one stop shop” for monitoring, control and communications our customer oriented, global distributor network and dedicated in house sales and service staff are here to support your mining operations today and for years to come. Take a look at our product catalog, check out the rest of this site or call +1.276.988.5505 for wired or wireless solutions on your next project.

MANAGEMENT AND DIRECTORS C. Bryan Daniels

Nathan Good

Non-Executive Chairman

Director

Stuart Champion de Crespigny

Peter Freeman

Chief Executive Officer

Director

Robert Champion de Crespigny, A.C. Director

72 | be mining

PBE Group MIneboss

Offices

The PBE MineBossTM Mine Wide Monitoring system was engineered to centrally monitor and control all aspects of large mining operation. If you are a mine operator or member of the management team then knowing the status on all parts of the operation is critical, and being able to respond to them immediately is even more so. Our solutions allow third party sensors, or those of our own design, to be utilized for continuous monitoring of priority systems such as ventilation fans and water pumps. Details like power status, vibration, speed, water levels, bearing temperatures, and more are always a few clicks away or can be linked directly from the computer map screen.

The MineBossTM Monitoring and Control System (MCS) has multiple alarm and warning levels that are user defined. It also allows different sound files to be associated with different events and alarms for customized alerts to various changes in the pumps and fans being monitored by the system.

Head Office 1459 Wittens Mill Road North Tazewell, VA 24630

product lines • Alignment Lasers • Communications • Conveyor and Motion Monitors • Dust Suppression • Fire Suppression • Gas Monitoring • Material Level Indicators •M ine Wide Monitoring and Control • Tracking Boss Personnel Tagging System •T ransient Voltage Suppression Data Line Isolators

Tel: +1.276.988.5505 Fax: +1.276.988.5892 Email: pboone@pbegrp.com PBE Australia 58 Terracotta Drive Nunawading VIC 3131 Tel: +61 3 8877 8900 Fax: +61 3 8877 8999 Email: sales.aus@pbegrp.com www.pbegrp.com

industries served • Animal Feed Plants • Coal Bed Methane Operations • Coal Mines • Copper Mines • Gold Mines • Grain Silos • Metal and non-Metal Mines • Natural Gas Producers • Pre-Cast Concrete Manufacturers • Public Utilities • Ready Mix Concrete Plants • Salt Mines • Tunneling Operations • Water Treatment Plants

be mining | 73

Tunnel

vision Technical director, Íñigo Núñez Blanco discusses how international expansion and the adopting of innovative technologies have been key to OSSA’s growth

written by: Will Daynes research by: Gary Smith

74 | be mining

OSSA

be mining | 75

Hydro Power Plant tunnel

OSSA

F

ounded as a family owned mining established connections, and also booming company in Spain in 1952, economies such as Asia, where underground OSSA is today active across the infrastructure continues to develop rapidly.” globe and recognised as being a The company’s most important goal is to leading figure in the underground transform OSSA into a globally recognised construction sector specialising in three core tunnelling brand. Meanwhile, as Blanco business segments, those being construction, goes on to highlight, another crucial aim for energy and mining.

OSSA is to become what he refers to as a Over the last six decades the company global reference in the market for its high has been responsible for the excavation of quality standards and reliable solutions. “Our more than 700 kilometres of underground commitment to investing in research and tunnels, 75 kilometres of shafts and more development has allowed us to remain at the than 500,000 cubic metres of caverns cutting edge of new technologies and this in on behalf of clients such as Rio Tinto, Southern turn has resulted in increased productivity.”

Perú Copper Co, CODELCO, While global expansion is Narcea Goldmines, Somincor, vital to the company’s longPizarras Expiz, Iberpotash, term strategy, it does continue to value its mining operations Hullera Vasco-Leonesa and Hunosa. in Spain, where it currently Today the mining segment holds two contacts, one with The year that OSSA accounts for around ten León’s Santa Lucia coal mine was established and the other with Huelva’s percent of OSSA’s total Aguablanca nickel mine. activit y, with further Further afield, OSSA has recently been growth expected as investment in the industry continues in line with the rising awarded a contract from Anglo American price of metals such as copper and gold. in Brazil. “This particular contract, which Considering this, you might well say that involves digging a tunnel around 250 metres the OSSA of 2013 is starting to return to in length, while not the biggest we have ever its mining roots. It is doing so by carrying received, represents our first foray into Brazil,” out projects in Chile, Peru and Brazil, while Blanco enthuses. “This provides us with a also tendering for new opportunities in great opportunity to further establish OSSA other Latin American countries. as an important global mining company.”

“The international expansion of our Elsewhere, OSSA is to participate in a large operations has certainly been one of the main joint venture project on behalf of CODELCO drivers of our growth in recent times,” explains in the Andina sector of Chile’s mining sector. technical director, Íñigo Núñez Blanco. “In Work on this particular project is expected that sense our focus is very much on Latin to commence in the first quarter of 2014 and America, due to our cultural influence and OSSA is very keen to contribute its experience

1952

be mining | 77

700 KM Total tunnel length OSSA has excavated over its 60 years

Construction at the Hydro Power Plant, Cortes de Pallás

78 | be mining

to what may well turn out to be one of the region’s more significant undertakings in the years to come.

The last 12-to-18 months have also seen the company make a number of important internal moves, namely the preparation of its first Communication of Progress statement, something that will result in the company adopting a more comprehensive social responsibility governance framework when it is completed around July of this year.

In addition to this, 2012 also saw OSSA develop an Ethics Code of Conduct, which encompasses critical issues such as safety, labour and the environment, and will be published on its website in the weeks to come.

Looking ahead to what the future holds for the business, Blanco is aware that while the high price of minerals is currently the driving force behind the mining boom in many countries, such a situation is not sustainable in the long-term, meaning a downward trend in mineral prices is all but inevitable. When such a situation does arise it will result in new project investment falling and will create a scenario where new developments in the sector will be analysed according to a more demanding set of criteria.

“With this in mind,” Blanco concludes, “it is

OSSA

Bifurcation at the Carrasconte Mine for Minero Siderúrgica

“The company needs to continue its legacy of betting on innovation and investment in research and development” clear to all of us within OSSA that the company needs to continue its legacy of betting on innovation and investment in research and development, which we see as the best way of creating a sustainable company that has the ability to succeed in the long-run. One of the ways we will look to do this is by adopting new technologies, including those from other industries, particularly those related to the monitoring and automation of processes, to

increasing productivity and of course further guaranteeing worker safety. In turn we hope this improves the overall efficiency of our mining operations and our contribution to a more sustainable sector in general.”

For more information about OSSA visit: www.ossaint.com

be mining | 79

company in brief OSSA, Obras Subterráneas, was founded in Asturias (North of Spain) in 1952 and originally dedicated to the mining business.

Our beginnings were hard in the world of mining, in a period in which a man’s work received little help from machines.

But the founders’ business acumen and perseverance bestowed OSSA with the best culture, infrastructure, workforce and mechanical resources to consolidate the company. Little by little, over more than 50 years, OSSA has grown in importance and it is now the current leader in the Iberian Peninsula in the underground works sector.

MANAGEMENT AND DIRECTORS Carlos Puente

Enrique Martín

Executive Chairman & CEO

Director For Spain And Latin America

David Onrubia

Manuel De Cabo

CFO

Director For Europe And Asia

Jaime Simón

Iñigo Nuñez

Managing Director

Technical Director

Carmelo Trujillo

Ana Lorente

Human Resources Manager

Board Secretary

Jesús García Pro Machinery And Supplies Director

80 | be mining

ossa turnover

Office Head Office Street Aragoneses 2-A, 3rd floor. Pol. Industrial Alcobendas 28108 Alcobendas, Madrid. Spain.

Tel: +34 902 678 808 / +34 91 782 34 00 Fax: +34 91 562 42 98 Email: info@ossaint.com www.ossaint.com

business areas *The 2013 data correspond to the budget (P)

• Construction • Energy • Mining • Tunnel Waterproofing

operating territories EUROPE • Spain • Andorra • Greece • Portugal • United Kingdom • Romania • Malta SOUTH AMERICA • Panama • Peru • Chile

• Brazil • Mexico • Nicaragua • Costa Rica • Colombia • Ecuador ASIA • Hong Kong • Emiratos Árabes • India • Taiwan • Malasia

Key stats and ratios More than 600 Km of tunnels •M ore than 60 km in Spain High Speed Train System (AVE), built in the last five years • c.30% market share More than 75 km of shafts • More than 70% of shafts built in Spain over the last fifteen years •M ain clients include Rio Tinto, Narcea Goldmines, Hunosa, Iberpotash, Somincor More than 500.000 m3 of caverns in hydropower plants for main Spanish utilities

be mining | 81

Looking beneath

the surfac

For more than 15 years Adrok has been a pioneer in t geophysical services. Managing director, Gordon Stove the next stage in the company’s growth and what it en

written by: Will Daynes research by: James Boyle

82 | be mining

Adrok

ce

the field of e discusses ntails

be mining | 83

Coal bed tracking using a 4-channel receiver system in eastern Australia

Adrok

T

he US alone,” managing director, Gordon Stove enthuses, “represents the single largest geophysics space in the world, with a revenue generation of over $2.4 billion a year from geophysical survey services alone. This is just one of the reasons why we are so keen to expand into that part of the world.”

Until the turn of the year Adrok serviced the US market from its headquarters in Edinburgh, yet it has always known that having an indigenous base in the countries in which it operates would be of great benefit.

The next logical step for the business was to open a base in the country, which it did in February 2013 with the opening of Houston, Texas, based Adrok Geosciences.

“One of the challenges we had before setting up this office,” Stove highlights, “was that we had a limited ability to promote ourselves and our technology to clients in the US. Americans do have a tendency to buy only from Americans or American based businesses, therefore it is strategically a great move for ourselves to have someone there now on the ground who can move around freely, set up meetings and attract new opportunities.”

Following a successful academic career within the Geography Department of the University of Aberdeen, technology founder and major shareholder of Adrok Ltd, Dr G Colin Stove went on to hold a number of high profile positions within his field of expertise, from leading Remote Sensing research at the Macaulay Institute for Soil Research to pioneering new radar research for a company

be mining | 85

set up to service UK Government and other commercial organisations.

Six years after establishing a new Ground Penetrating Rader business, Dr Stove sold the company to an international drilling firm.

This presented him with the opportunity to establish a science business that would allow him to develop his ideas around Atomic Dielectric Resonance (ADR) technology.

Based in Edinburgh, Adrok combines

leading scientists and engineers and has successfully commercialised the technology to the advantage of numerous industries, ranging from oil and gas to geophysical exploration and research.

“The first two years of our life,” Stove explains, “were spent applying for the intellectual property for the technology that my father invented. It was then in September 1999 that we set up the commercial company,

“Adrok combines leading scientists and engineers and has successfully commercialised its ADR technology to the advantage of numerous industries”

One of Adrok’s many onshore surveys in USA. For this survey in Texas, the ADR scanner was deployed from a zipline.

86 | be mining

Adrok

Adrok works in all environments and has carried out mineral exploration surveys on frozen lakes in Canada and the Arctic Circle

before embarking on the long, arduous task of research and development in order to build up, test and improve the technology.”

After extensive research and development that lasted a number of years, Adrok successfully launched its first commercial service project in the spring of 2007. It was at this point that it set its stall out to become a leading geophysics and survey company, picking up work from several oil and mining businesses, going out to their respective properties and conducting a full survey of the land.

“In addition to deducing what the geology,

hydrocarbons, minerals or rock types are actually in the ground,” Stove continues, “we also provide our clients with better intelligence of the subsurface, while also helping to de-risk their drilling programmes. That is what we as a company are all about, helping our clients with their drilling programmes by conducting a detailed, intense survey in order to map out the rock types in the ground. We do this before drilling commences, so we are at a stage that helps filter the drilling decision making processes of our clients so they can definitively state where to drill.”

be mining | 87

Survey in a marshy field in Ireland prospecting for lead and zinc metals

“Central to the next stage of the Adrok’s growth is its ability to turn itself into a major geophysics services provider” Adrok uses advanced ADR technology to supply pioneering geophysical services for the location, identification, mapping and exploration of subsurface natural resources.

A patented investigation technique, ADR works by taking images inside materials and subsequently classifying them. It does so by measuring and interpreting resonant energy responses of natural or synthetic materials while these interact with pulsed

88 | be mining

electromagnetic radio waves, microwaves, millimetric or sub-millimetric radio waves being passed through them.

“The major benefit our clients derive from using ADR technology comes in the form of significant cost savings,” Stove states. “We guarantee that by using the technology we can save the client up to 90 percent of the cost of physically drilling a hole, meaning that for the price of one drill hole we can

Adrok

Hydrocarbons survey in Egypt

Extreme surveying for gold in the hills of Perthshire, Scotland

provide as many as ten virtual bore holes.”

Other benefits include low energy use, the ability to operate at close or long range, the lightweight nature of the equipment that allows for greater accessibility and transportation, and its ability to function in all manner of environments and conditions. Furthermore it has significant environmental pluses, being a nondestructive technique that does not have any adverse effect on the land itself.

While the technology has the ability to function offshore, Adrok’s current focus revolves around land based targets, particularly those in Canada, the US and Australia, which are among the largest oil and gas, and mining rich parts of the world.

As the company has found on a number of

occasions throughout its history, introducing any new product or service to the marketplace comes with its own challenges, not least the task of having to convince those who are sceptical. Adrok has discovered the best solution to this is simply for it to actively go out and showcase the technology is has and what it does for its users. In doing so it has been able to demonstrate up close the value the technology can bring to the table, something that has been greeted extremely positively.

“We are growing at such a fast rate that internally we have more projects than people in the company right now,” Stove says,” which is a good position to be in, but we do have to ensure that we remain capable of delivering strong, value added services to our clients.

What we have been very good at doing is

be mining | 89

Appraisal survey onshore Oman for hydrocarbons from a standard 4x4 vehicle.

Adrok’s first foray into the Middle East market

Adrok

$2.4 Billion Yearly revenue generation in the US from geophysical survey services setting up internal quality systems, procedures and policies to make sure that our work flows are working efficiently and effectively throughout the business. Meanwhile, being awarded ISO:9001 accreditation was also quite a big windfall for us.”

Central to the next stage of the company’s growth is its ability to turn itself into a major geophysics services provider, something that it hopes can be achieved by further educating the market about its technology, demonstrating the added value it can bring and ultimately securing new clients.

“We have achieved such a great deal in the space of 15 years,” Stove concludes. “Since the day we commenced operations we have secured the intellectual properties to our technology, worked with universities and academics in order to prove it up, demonstrated the technique countless times, secured a number of major multinational clients and secured several rounds of investment along the way. That is a lot to have achieved in a relatively short space of time and is a growth story I certainly feel is worth sharing.”

For more information about Adrok visit: www.adrokgroup.com

be mining | 91

company in brief Adrok was founded in 1997 to continue the development of ADR technology which was discovered by founding member Dr Colin Stove and supply pioneering geophysical services to industries all over the world.

Based in Edinburgh, Adrok combines leading scientists and engineers and has successfully commercialised the technology to the advantage of numerous industries, ranging from oil and gas to geophysical exploration and research. Adrok’s

founders have been researching and applying Atomic Dielectric Resonance technology for more than 15 years, working closely with industry specific professionals.

MANAGEMENT AND DIRECTORS

Offices

Dr G Colin Stove FBAC PhD BSc

Adrok (Head Office) 49-1 West Bowling Green Street Edinburgh EH6 5NX

Chairman & Scientific Director

Gordon Stove BSc Managing Director

Alfred Odell BSc Chief Software Officer

Michael Robinson MEng Technical Director

Colin Joudrie Investor Director

Gordon Stove, MD T +44 131 555 6662 gstove@adrokgroup.com Adrok (North America) 2500 CityWest Blvd, Suite 300 Houston, Texas 77042-3033 Stuart Goldstein, VP for Business Development North America sgoldstein@adrokgroup.com T +1-713-267-2283 | M +1-713-816-1415 www.adrokgroup.com

92 | BE Mining

adrok technology

survey process

The ADR Scanner is used for detecting and analysing the electromagnetic radiation absorbed or emitted by a substance, this accurate method offers clients a useful understanding of the shape and contents of materials examined.

Adrok supplies innovative electromagnetic related knowledge, technology and services for the precise identification, imaging and mapping of materials.

Adrok’s ADR Scanner provides: • Image of the target objects scanned • Material classification of subject • Thematic mapping of image and material classification Within the oil and gas and mining sectors, substances can be identified and quantified before extraction. The ADR scanner penetrates both soft and hard rock allowing higher resolution geological mapping and can easily be used with a boat, plane, helicopter or truck for all-terrain exploration. The technology can also be used to develop new reserves and monitor producing fields.

Adrok’s typical workflow for client projects is: • Pre-survey field modelling and project scoping • Adr scanner training for signatures • On-site survey data acquisition • Data processing and interpretation • Analysis and results delivery • Integration to other data sets

operating territories • Africa • Australia • Europe • Canada • USA

The benefits of ADR technology include: • Low energy used • Non-destructive waves to minimise chemical or biological changes to material under examination • The ability to operate at close or long range • The scanner can work through air, water and rock • Lightweight tool for greater accessibility and transportation • Field-rugged and able to scan large remote areas for enhanced geological exploration • Cost effective scanning solution

BE Mining | 93

THE COPPER

CONDUCTOR 94 | be mining

Codelco

Almost a third of the world’s copper production comes from Chile whose state copper production company Codelco dominates world supply

written by: John O’Hanlon research by: Richard Halfhide be mining | 95

Codelco

C

Autonomous mining trucks

opper fundamentals are highly buoyant. Demand for copper is increasing at over half a million tones annually, most of it driven by China, which consumes 20 percent of global supply.

Demand for copper shows no sign of levelling off in the opinion of researchers at Yale, who calculated from 2006 consumption figures that global demand for copper would exceed the amount extractable from the ground by 2100.

Codelco (Corporación Nacional del Cobre de Chile or the National Copper Corporation of Chile) was founded in 1976, five years after the Chilean government nationalized the entire copper mining industry. Codelco grouped the existing deposits into a single mining, industrial and commercial corporation and today it is the biggest copper producer in the world controlling a tenth of known global reserves. Codelco has more than $20.835 billion in assets and in 2011 its equity totalled $6.065 billion. In the same year the company produced 1.79 million metric tons of refined copper - over ten percent of world copper production. And at today’s investment levels it estimates it has the capacity to maintain current production rates for a further 70 years at least.

But that can’t be done without strategic investment, and a number of specific projects are being targeted. The Andina Division is located at 3,000 metres above sea level a little to the north of the Chilean capital Santiago and at the base of the chain of operations that is strung out along the Andes in the northern half of Chile. It

be mining | 97

CODELCO Codelco

FINNING, CONTRIBUTING TO THE FUTURE OF MINING benefits to the mining companies, it permits that the workers operate from securer places and the possibility that the processes are conducted in a more constant manner” In addition, Finning and Caterpillar have been working on the design, development, validation and implementation of new processes, equipment and technologies, for the exploitation under a new concept called “continuous mining”. This implies a very big technological change, which will permit the extraction of mineral without detentions.

This technology addresses several of the current challenges that the mining industry Mining companies are continuously looking faces: increase of the costs, derived from for different ways to improve security, fall in the quality of the mineral extracted , reduce costs, increase profitability, and promoting efficiency. Also, new technologies requirements of sustainability and the need for always improving the standards of safety are always required to increase production, and occupational health of the operators and improve the recovery of the minerals and to mining workers. keep the workers secure.

Finning and Caterpillar have understood this “Finning’s aim is to fulfill the markets needs challenge. That’s why they have implemented with excellence in equipment and services, so that their customers may reach each an important technological plan, which facilitates advancing towards an automated of their goals. To be able to do this in an accurate manner technology plays a key mining industry using the latest technology role, that’s why Finning and Caterpillar are in systems, which allows control and command of the operations of various mining working so hard in that dimension. Last but not least, Finning is playing an important role tasks from a central office.. in tackling the challenge of lacking qualified Currently Finning´s offerings includes professionals for the mining business in semiautonomous technology that allows general, by investing in Technical Formation, for operation of LHD equipment, this suite to be able to ensure and deliver the best is called Command. Command permits the operator to do the loading work cycle from a service in the market and to offer formation remote location, operating the machine using for operators and technicians on the client´s side.” a control.

“It is positive to be incorporating process www.finning.com automation, since it brings important

WEEKLY| |992 beBEmining

$4.3 Billion Invested by Codelco in 2012

Employee at the Ventanas division

100 | be mining

is a combined open-pit and underground mining operation. Andina Expansion Phase I project involved expanding its mining and processing capacity from 72,000 tonnes per day to an average 94,000 tonnes per day and was completed in 2012 at a cost of $1.2 billion. But this was just the first part of a major expansion programme aimed at increasing annual production at the mine to around 680,000 tonnes over the next 30 years. Andina Phase II is truly a megaproject involving the shifting of more than half a million tonnes of ore daily once it is completed in 2018 – by then Codelco will have invested $6.27 billion at Andina.

Chuquicamata, 1,600 kilometres to the north of Santiago near the port of Antofagasta, is an open pit operation that has been mined for a century and is close to being mined out.

But lying at a deeper level Codelco estimates there is a further 1.7 billion tonnes of copper ore. So from 2019 and for the next 50 years after that Chuquicamata will operate as an underground mine, a change that will cost $3.8 billion. The method to be used here is block caving, which involves driving access tunnels below fragmented ore that is crumbly enough to flow under gravity to the waiting trucks. It is an increasingly favoured way of dealing with high volume, relatively low

Codelco

Construction of the underground tunnels at Chuquicamata

grade ore deposits (Chuquicamata comes in at around 0.7, with molybdenum at around 500 ppm) as long as the geology is right Going underground at Chuquicamata will give Codelco potential production of 340,000 tonnes of fine copper and more than 18,000 tonnes of fine molybdenum a year from an expected throughput of 140,000 tonnes of ore a day. During its

construction it will create a maximum 3,767 jobs. From 2019, the operation will provide work for up to 4,837 employees.

It is being designed to the highest safety standards, and will have a very positive environmental impact – by going underground Chuquicamata will reduce its dust emissions by no less than 97 percent.

Another older mine, this time an

“From 2019 and for the next 50 years after that Chuquicamata will operate as an underground mine, a change that will cost $3.8 billion” be mining | 101

ENGINEERING-ENVIRONMENTAL

www.pochcorp.com

• Analysis and Project Evaluation

• Sustainable Development

• Engineering and Design

• Environmental Engineering and

• EPCM Projects • Implementation and Commissioning • Project Management • Procurement • Construction Management

Management • Natural Resources and Cultural Heritage • Strategies for Businesses and Communities relations • Green Building

Chile - Peru - Colombia - Brazil - Mexico - United States - Australia

CODELCO Codelco

ENGINEERING-ENVIRONMENTAL A Latin American leader in engineering, construction, project management and environmental.

POCH is a Chilean enterprise specialized in providing Engineering and Environmental consultancy services.

With more than 23 years of experience, POCH is a leading company in the South American market, with a team of over 600 professionals and experts in the developing of integral services which include Engineering, Project Management, Construction Management, Technical Inspection of Works, EPCM Projects, Environmental Management, Natural Resources and Sustainable Development, among others.

The company has participated in the development of important investment projects and services for many recognized Chilean, Latin-American and worldwide companies, in many different industries, such as Mining, Food and Beverages, Telecommunications, Infrastructure, Energy, Edification, among others.

Privately owned and with headquarters in Santiago, Chile, POCH has offices also in Peru, Colombia, Mexico, Brazil, Australia and the United States.

The company´s commitment to face new challenges and to constantly diversify its

services has allowed it to sustainably and organically grow in a 15% relation per year.

Looking forward to constantly attend the Mining industry needs, a very important economic sector in Chile and South America, the company has an experienced and professional team of experts and specialists in the fields of Engineering and Environmental services, also in all the different engineering specialties, such as civil, structural, electrical, mechanical and piping, robotics and hydraulics, among others.

In the Chilean mining industry, POCH has participated with an important number of firms mainly offering them Engineering and Environmental Services, growing step by step in the development of solutions for this industry.

In another matter, POCH has a very important commitment to develop a sustainable business and to contribute to the development of economies and communities where it develops projects and studies. The company is also a member of the Global Compact initiative of the United Nations, which brings together companies around the world to work in relation to the respect of human rights, labor, environment and anti-corruption.

E. poch@pochcorp.com www.pochcorp.com

WEEKLY| 103 |2 beBEmining

underground operation, is the El Teniente property that traces its origins as far back as 1819, though commercial mining has been done there since 1905. The existing mine near Rancagua south of Santiago is the world’s largest underground copper

mine containing 2,400 kilometres of tunnels and lies at an altitude of nearly two kilometres. The new mine level (NML) will involve cutting a massive two million square metre slice deeper into the mountain, accessed by two parallel

“It seems inconceivable that the demand for Chilean copper could fail to justify the massive expansion projects that are in the pipeline�

Copper production at Chuquicamata

104 | be mining

Codelco

Operations office at the Andina division

nine-kilometre tunnels, one for access and the other for the conveyor that will take the ore out to the concentrator site.

Between 2011 when construction started and its commissioning in 2017 the project will build 98,450 metres of tunnels and 3,454 metres of vertical ventilation shafts and transfer shafts. Most of the $3.5 billion investment will go on this underground work: surface work includes

the construction of a new, faster road from Rancagua with associated tunnels and bridges – this will make life easier for the mine’s 5,500 employees. To a great extent the new El Teniente operations will be remotely operated from a control room at Rancagua, 50 kilometres away from the mine. The NML project adds 2.02 billion tonnes of reserves, at a 0.86 percent copper grade. Codelco estimates that at over 50

be mining | 105

Codelco’s Radomiro Tomic division

Codelco

1,809

million tonnes Codelco’s 2011 copper production years of operation starting from the end of 2017 it could produce more than 17 million tonnes of fine copper.

In all Codelco’s current portfolio involves 30 studies and projects aimed at keeping the Chilean national mining giant in a leadership position globally, not only in terms of production numbers but also in environmental, technological and safety best practices right across the value chain. Emissions, water usage and energy conservation are all at the heart of Codelco’s strategy – however it seems inconceivable that the demand for Chilean copper could fail to justify the massive expansion projects that are in the pipeline.

The company’s recently appointed CEO Thomas Keller has been busy courting world markets and especially the Chinese market which according to Keller accounts for 40 percent of world demand an can be expected to grow between five and seven percent annually based on China’s predicted GDP growth of up to eight percent.

For more information about Codelco visit: www.codelco.com

be mining | 107

company in brief Codelco is the main copper producer in the world.

The Corporation also controls around 10% of the world reserves of this metal.

The Name Codelco represents the Corporación Nacional del Cobre de Chile, an autonomous company owned by the Chilean State which main business is the exploration, development and exploitation of copper mineral resources and byproducts, their processing to refined copper and its commercialization.

Codelco has more than US$ 20.835 billion in assets, and in 2011, its equity totalled US$ 6.065 billion. In 2011, Codelco produced 1.79 million metric tons of refined copper (including its interest in El Abra mine). This figure is equivalent to 10 % of the world copper production. Its key commercial product is Grade A copper cathodes.

The Company develops its operations through six mining divisions plus the Ventanas Smelter and Refinery, owned by Codelco since May 2005. Its corporate strategy is coordinated from its Head Office in Santiago, Chile.

The Company also has ownership interest in several important mining companies, such as in Minera Gaby S.A., where it holds 100%, and El Abra, with a 49% stake; and other mining partnerships in geological operations both in Chile and abroad.

MANAGEMENT AND DIRECTORS Thomas Keller Lippold

Marcos Lima Aravena

President & Chief Executive Officer

Director

Gerardo Jofré Miranda

Marcos Büchi Buc

Chairman of the Board

Director

Fernando Porcile Valenzuela

Jorge Bande Bruck

Director

Director

Juan Luis Ossa Bulnes

Raimundo Espinoza Concha

Director

Director

Andrés Tagle Domínguez Director

108 | be mining

codelco copper output Division

2012

2011

Var

%

Chuquicamata

355,9

443,4

-87,5

-20%

Radomiro Tomic

427,8

470,1

42,3

-9%

Minera Gaby

133,0

118,1

14,9

13%

Salvador

62,7

69,0

-6,3

-9%

El Teniente

417,2

400,3

16,9

4%

Total Output

1.647

1.735

-89

-5%

Investment highlights

Office

Agreement with Anglo American: on 23 August both companies reached an agreement, resolving the judicial dispute related to the option to buy 49% of Anglo American American Sur (AAS).

The agreement establishes that Anglo American continues to control control 50.1% of AAS; while a joint venture between Codelco and Mitsui, controlled by Codelco, acquired 29.5% of AAS.

HEADQUARTERS: Huérfanos 1270, Santiago, Chile Tel:+562 6903000

In April 2012 the Codelco Shareholders’ Meeting was held where the ministers of Mining and Economy reaffirmed the decision to maintain the investment investment level for Codelcos’ debt.

At the end of June, the Government authorised a US$800 million capitalisation of profits. In July, the Company successfully issued US$2 billion in 10 and 30-year bonds, and obtained very good conditions for a Latin American issuer.

www.codelco.com

products • Copper

operating territories • Chile

be mining | 109

Reaping the rewards

110 | be mining

Nkomati Mining

Mining manager Trevor Visagie explains how the rapid development of the Nkomati mine continues to reward not only its employees, but the local community as well

written by: Will Daynes research by: Jon Bradley

be mining | 111

The plant complex

Nkomati Mining

L

ocated in eastern South Africa and sharing borders with Swaziland and Mozambique, the province of Mpumalanga constitutes approximately 6.5 percent of the country’s total land mass. A popular tourist destination, with visitors being particularly drawn to Kruger National Park, Mpumalanga is also home to a number of extensive mining operations.

It is about 40 kilometres to the south east of the small town of Machadodorp, also known by its official name of eNtokozweni, that one will find the Nkomati Nickel Mine.

One of three mines that comprise the African Rainbow Minerals (ARM) Platinum division, Nkomati is a small to medium-size base-metal operation, exploiting a complex, high-grade nickel, copper, cobalt and platinum-group metal deposit. The mine itself comprises both an open pit and an underground operation.

Accessing the deposit by means of two vertical shafts, this highly-mechanised operation exploits two large low grade Ni-sulphide ore bodies by means of trackless equipment.

Expected to eventually reach 2.5 kilometres in length, 800 metres in width and with a depth of 240 metres, the open pit will one day be one of the largest of its kind in South Africa.

A relatively young development, Nkomati mine was established in 1997 and operates as a joint venture between ARM and Norilsk Nickel. At present the mine provides work for 833 employees and 2404 contractors. One of these employees is mining manager, Trevor Visagie, who joined Nkomati in July 2010, bringing with him an extensive background in mine engineering.

be mining | 113

Power Plant Electrical Technologies (PPE Technologies) is an integrated electrical

engineering organisation situated in Nelspruit, Mbombela South Africa.

Our services cover a range of industries including Mining, Pulp and Paper, Timber, Sugar, Metals industries, Municipal and Utility infrastructure, extending throughout South Africa, Southern Africa and selected Western and Central African Countries.

We provide high voltage, medium voltage and low voltage electrical equipment & infrastructure, control and protection systems and solutions.

Our specialist services provide commissioned solutions and maintenance support services on electrical reticulation networks, generator plants and plant control systems.

Our Products include new HV and MV switchgear and protection, upgrades and retrofits to existing HV and MV switchgear and protection, Bus Bar Manipulations, LV Switchboards and Motor Control Centres and motor starters, PLC Panel, Power Factor

Correction Solutions, Relay Panels, Synchronization Panels and Variable Frequency Drives.

We provide load measurement, load profiling, load flow studies, fault level studies, electrical network studies, power quality studies and modelling and electrical protection system design. We also provide lightning protection solutions, earthing system solutions and assessments of existing installations. Our years of engineering support to manufacturing plant enables us to rapidly identify and solve post commissioning problems, which adversely affect operational plants.

We therefore pride our-selves as a multifaceted electrical engineering company working beyond the normal electrical project installation, with insight into what really works and what really causes problems for electrical networks, PLC and DCS control systems and associated electrical infrastructure.

www.ppetech.co.za

Nkomati NKOMATI Mining MINE Nkomati Mine feature text to go here.....

Lorem “In the ipsum 15 dolor yearssitsince amet, consectetur adipisicing elit, sedVisagie do eiusmod tempor it was opened,” incididunt labore et dolore explains, ut “the mine has magna aliqua.

Ut enim ad minim veniam, quis nostrud expanded considerably exercitation ullamco laboris with the development of nisi ut aliquip ex ea commodo its open pit mineconsequat. and of itsDuis aute irure various dolor in plants. reprehenderit The recent in voluptate velit commissioning esse cillum dolore of the eu mine’s fugiat nulla pariatur. production Excepteur sint plants occaecat hascupidatat non helped proident, take sunt nickel in culpa concentrate qui officia production deserunt volumes mollit anim up to id est in excess laborum. of 200 Lorem thousand ipsum tonnes dolor sitper amet, year.” consectetur adipisicing elit, sedThe do eiusmod incididunt ut laborea mine hastempor recently come through

et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod massive tempor expansion incididunt project ut labore that stemmed et dolore from the magna commissioning aliqua. Ut enim of two admajor minim plants, veniam, the quis ofnostrud exercitation first which began in 2009,ullamco followedlaboris by the nisi ut aliquip ea commodo consequat. second in 2010.ex Currently in progress is the

PPE TECHNOLOGIES The PPE Technologies team has a long term view on its customer relationships.

The majority of our customers are introduced to us through “word of mouth” references when electrical equipment reliability challenges arise.

We use these opportunities to engineer practical solutions that work! In each case these introductions lead to the development of a continued business relationship, built on our trusted reliable service.

In the case of ARM, PPE services the Nkomati, Modikwa and Two Rivers Mines.

At Nkomati, PPE has actively integrated its services to a large degree and has worked hard with mine engineers to overcome a number of reliability challenges. PPE has been trusted to implement several solutions which have seen the mine’s reliability and operational uptime improve markedly.

These solutions include the maintenance and testing of medium voltage systems

allowing the identification and rectification of numerous problems. This also includes the review of the protection schemes and implementation of improvements, achieving direct results. Also of note is the implementation of plant equipment earthing solutions which were seen to reduce control equipment failures and maintenance interventions on the overhead line equipment and auto-reclosers, again with immediate noticeable improvements.

As PPE Technologies offers project solutions based on years of experience in an operational environment, we believe that our engineering insight and expertise, with our simple and practical approach, really does work to the customer’s long term benefit. We look forward to growing our service relationship with Nkomati and African Rainbow Minerals into future projects throughout the group. www.ppetech.co.za

JANUARY be mining 2013| |1152

YOUR BEE POWER TRANSMISSION SUPPLIER www.vitalpt.co.za Vital Power Transmission specialises in the power transmission industry and in maintenance free power transmission products and we are proud to have achieved the following agencies and provide and supply the following products and services: AGENCIES • MagnaDrive • Autogard • Pembril • Maina • Sime – Stromag • Tru-line • Vulkan Drive Tech • Cable Reel Engineering • Drumotech – motorized pulleys Specialized Products: Suppliers, Repairs and Services Vital Power Transmission specializes in maintenance-free power transmission products and they are proud to supply the following products.

PRODUCTS • Permanent magnet Couplings • Drum & disc Brakes • Speedswitches • High and Low Speed Backstops • Rigid Flange Couplings and Locking Elements • Various Transmission Couplings • Samiflex Elastomeric • Din Std Gear Couplings • Agma std Grid & Gear Couplings • Fluid Couplings • Torque Limiters and Clutches • Cardan Shafts • Cable Reeling Systems and Magnetic

REPAIRS Vital Power Transmission specializes in repairs of: • Gearboxes • Fluid Couplings • Holdbacks • Brakes and Thrusters • Complete Drive Packs SERVICES Vital Power Transmission specializes in the service of: • Laser Alignment (shaft to shaft) • On-site Installations and Repairs • Plant Drive Surveys

VITAL POWER TRANSMISSION Lets Trade 1289 CC t/a Vital Power Transmission was established in 2001.

The corporation’s leadership and staff have many collective years of experience in the field of power transmission, specialising in drive solutions and improvements, maintenance-free power transmission products, client acquisitions,

and product consultancy in the industries of mining, power generation, fuel and steel.

Vital Power Transmission feels there is a shortage in the power transmission field pertaining to support, maintenance and environmental impact issues and we at Vital Power Transmission are striving to fill that shortage and provide the ultimate service and supply to its customers.

The company is operated and managed adhering to strict guidelines and standards compliant with system implementation.

E.matthew@vitalpt.co.za www.vitalpt.co.za

BE WEEKLY | 1

Nkomati Mining

Excation work on the open pit mine

sinking of a ventilation shaft that will enable is of vital importance to Nkomati Mining. the operator to carry out future underground “What we strive to do,” Visagie enthuses, “is expansion projects. provide direct benefits to local communities, “Significant capital injections are continuing predominantly in the form of employment to be made across the site with the purpose and by providing skills and opportunities that of not only sustaining the operation, but can lead to the establishing of local businesses expanding it as required,” Visagie continues. and enterprises. These businesses then find “Essentially the mine has evolved beyond themselves benefitting from the preferential treatment we strive to give what could be described as those that exist within a its growth phase and now 50 kilometre radius of the finds itself entering its mine when it comes to equally as important sustainability phase.” acquiring services.”

Being situated in such a As Visagie goes on to Employees and remote part of the world, highlight, what the mine contractors employed the contributions made by takes just as seriously to work at the mine and to local communities as its commitment to

3,327

be mining | 117

WPH is a Material Handling, Crushing and Screening company based in Mpumalanga South Africa Tel (+27 13) 764 2623\4 /+27 825682252 /+27 824984821 Email: office@wimsplanthire.co.za

CYCLONE PROJECTS & CONSULTING cc CYCLONE ENGINEERING PROJECTS (Pty) Ltd P O BOX 22000, HELDERKRUIN 1733 REPUBLIC OF SOUTH AFRICA TEL: +27 (11) 662 2916 FAX: +27 (86) 632 9646 EMAIL: info@cyclones.zo.za WEB: www.cyclones.co.za Both Cyclone Projects & Consulting and Cyclone Engineering Projects thrive to deliver the most professional service to our client base in the consulting and construction/ management of Tailings Storage Facilities (TSFs). This is achieved by an open policy where honesty and trust are the keywords between us and the Client. A professional and supportive management and labour force contributing to our goals, mission and vision.

Nkomati Mining social responsibility is its Wims Plant Hire consideration for the natural Situated in Mpumalanga, South Africa, WPH has been environment. “We operate servicing the mining industry for the past 10 years, in a very beautiful, pristine specialising in material handling, screening and crushing. environment, highlighted During this time we have built up a good relationship with by several natural water various mines. systems that run next to office@wimsplanthire.co.za the mine complex. This water is actually used by those communities living downstream of Nkomati. We maintain extremely stringent controls on any aspect of the operation that could affect the community. This relates to things like blast vibrations and dust creation in order to comply with the strictest of international standards.”

The entire environmental ethos of the business appears to revolve around the idea of capturing and utilising the resources provided by what is a fairly undulating area, while striving to avoid causing any long-term detrimental effects. An example of this philosophy can be seen in action with the on-going construction of a storage dam. The aim of this endeavour is to provide the site with the means to accumulate and store water during the rainy seasons for use in drier times. This will minimise the abstraction of water from the surrounding rivers and will allow all dirty water on the Underground at the mine

“The mine has recently come through a massive expansion project that stemmed from the commissioning of two major plants” be mining | 119

Nkomati Mining mine to be re-used rather than discharged.

With Nkomati undergoing rapid expansion over the last couple of years, the main challenge it continues to face is avoiding having an excess turnover in terms of staff.

The retention of top talent is key to the success of the business and as such Nkomati Mining offers its employees competitive salaries and attractive retention incentive bonuses.

Further to the financial benefits, the fact that the company is only now starting to realise the vast potential of Nkomati is something that is proving increasingly exciting for each and every one of its employees.

The results of all the hard work that has gone into making Nkomati a success are truly starting to show, with both plants breaking their individual milling records in October 2012, producing record nickel units.

“The team here,” Visagie says, “are now beginning to taste the success of their own work and, as the old saying goes, success breeds success and that is what we see happening. This reemphasises the fact that we view the future as being very bright indeed for Nkomati. When you look at the resources and assets we have in the ground it equates into what we predict will be a long, rich life of mining ahead. If we can continue along the same path, while containing our operational costs, there is no reason why we cannot be a successful business for many years to come.”

For more information about Nkomati Mining visit: www.arm.co.za MMZ plant

be mining | 121

company in brief African Rainbow Minerals (ARM) is a leading South African diversified mining and minerals company with long-life, low unit cost operations and significant growth opportunities.

ARM mines and beneficiates iron ore, manganese ore and alloys, chrome ore and alloys, platinum group metals, copper, nickel and coal.

ARM also has an investment in gold through its shareholding in Harmony.

MANAGEMENT AND DIRECTORS Patrice Motsepe

Tom Boardman

Executive Chairman

Independent Non-Executive Director

Mike Schmidt

Anton Botha

Chief Executive Officer

Independent Non-Executive Director

Mike Arnold

Joaquim Chissano

Financial Director

Independent Non-Executive Director

AndrĂŠ Wilkens

Mike King

Executive Director: Growth and Strategic Development

Independent Non-Executive Director

Mangisi Gule

Independent Non-Executive Director

Executive Director: Corporate Affairs

Dr Manana Bakane-Tuoane Lead Independent Non-Executive Director

Frank Abbott Independent Non-Executive Director

122 | be mining

Alex Maditsi Dr Rejoice Simelane Independent Non-Executive Director

Bernard Swanepoel Independent Non-Executive Director

nkomati mining Revenue spilt Nickel 9%

Office Iron Ore 44%

Platinum 19%

Tel: +27 11 779 1300 Fax: +27 11 779 1312 E-mail: ir.admin@arm.co.za

Coal 19% Chrome 19%

Corporate Office ARM House 29 Impala Road Chislehurston Sandton 2196

www.arm.co.za Manganese 18%

divisions financial highlights • Headline earnings increased 2% to R3.45 billion (F2011 restated: R3.37 billion) in difficult market conditions. The headline earnings per share were 1 615 cents compared to 1 585 cents in F2011 (restated).

• ARM declared an increased dividend of 475 cents per share, compared to the F2011 dividend of 450 cents per share.

• Sales revenue increased 18% to R17.53 billion due to increased sales volumes achieved.

• ARM maintained a robust financial position with net cash (excluding partner loans) of R2.3 billion (F2011: R2.6 billion).

• Platinum • Ferrous • Coal • Copper • Exploration • Gold: Harmony

products • Nickel • PGM’s • Chrome • Iron Ore • Manganese Ore • Manganese Alloys • Chrome Ore • Charge Chrome

• Coal • Copper • Gold

be mining | 123

The metals of energy Grupo FerroAtlĂĄntica combines bewildering diversity with simple principles, sticking firmly to its objective of remaining the world leader in silicon metal and other diverse alloys, developing downstream technologies for the energy industry

written by: John O’Hanlon research by: Louisa Adcock

124 | be mining

FerroAtlรกntica

be mining | 125

The Nuevo Pindo hydroelectric plant

FerroAtlántica

T

he Spanish industrial minerals group FerroAtlántica dates back to 1992, when Juan-Miguel Villar Mir acquired the Ferroalloys Division of Carburos Metálicos.

He added a number of businesses, till in 2007 the business had arrived at a critical mass that enabled itself to launch itself as today’s Grupo FerroAtlántica: since then it has continued to grow through acquisition within the silicon and ferroalloys sector, but also setting up a number of new businesses around the world, as dictated by the growing market in these commodities.

Today it employs 3,000 people in five countries and four continents. Starting with four factories in Spain in 1992, it now operates fifteen factories in Spain, France, South Africa, Venezuela and China, and produces over 1 million tons of a diversified array of alloys.

The parent group (Grupo Villar Mir), says Chairman Juan-Miguel Villar Mir, has the unusual distinction of being made up from companies that were in difficulties, were turned around and are now thriving – it is now the 14th largest Spanish corporation. A former Finance Minister, he was ennobled by the King of Spain in 2011 and in recognition of the work the group has done in France he was awarded France’s highest honour when he was installed Chevalier de la Légion d’honneur in 2010.

Grupo FerroAtlántica itself, having grown in this manner, says Group Chairman and CEO Pedro Larrea, has also proved the success of the model, demonstrated by a turnover of more than €1.1 billion in 2012. Following a

be mining | 127

YO U R LO N G T E R M PA RT N E R F O R LOW A S H C OA L!

Enerco BV – Keerweg 2 – 6122 CL Buchten – The Netherlands T: +31 464 819 900 – F: +31 464 859 211 – E: info@enerco.nl - www.enerco.nl

Rheinfelden Carbon is proud to be a strategic supplier to Ferroatlantica

FerroAtlántica difficult trading period, the enerco strategy will be continued.

Based in Born, The Netherlands, ENERCO has been a long“Our strategy continues term partner of FerroAtlantica for many years and is the to be based on ensuring leading producer of high quality, low ash coal world-wide for operational excellence, more than two decades. ENERCO produces in cooperation maintaining a portfolio with its customers tailor-made coal products in its modern of worldwide growth processing facilities in Amsterdam, Rotterdam and Born, and prepares grades with precise sizing and ash content to projects and promoting meet their specific requirements. Comprehensive research technological innovation to and development programs led to patents and the design of be able to maximise profits flexible and efficient coal upgrading processes which allow when recovery comes, just-in-time delivery all over the world. ENERCO offers which we hope will happen customer-oriented services from procurement to shipment, throughout 2013. In a market from coal upgrading to marketing. environment that we hope www.enerco.nl will improve this year, and especially from the start of 2014, we will continue to look for sites for future factories, as well as launching and driving new product sales management, and improving our competitiveness.”

The competitive scenario is an increasingly demanding one, he points out, in a market driven by demand for efficient energy production. “To maintain our current market position, we will need to be able to incorporate a new production plant every two or three years. Given that we are talking about completely globalised markets, we look for the most efficient location with regards to the cost of energy, raw materials and transport, and we are confident of providing our technological and operational capacity to make them the most efficient in the world.

Without being too specific, I can say that we are at an advanced stage in developing new projects on five continents.” At the same time, he adds, FerroAtlántica is keeping a close Group Chairman and CEO Pedro Larrea watch on mineral exploration developments

be mining | 129

€1.1 Billion+ 2012 group turnover

The Monzón factory in Spain

130 | be mining

with a view to improving the supply of raw materials – and will also consider entering the electricity generation market.

When asked about the challenges silicon technology faces from advanced plastics and other materials, he is quick to point out that silicon remains the key material for new technologies. FerroAtlántica’s Elsa electrode, which offers significant energy savings and avoids contamination with iron, has been sold to the world’s main silicon metal producers and is used in the manufacture of 30 percent of all silicon metal produced today in the western world. “We also have proprietary technology to manufacture cheaper and cleaner photovoltaic quality silicon metal more efficiently,” he enthuses, drawing attention to the market fundamentals: demand from photovoltaic cell manufactures for this material is still surging at an annual rate of 20-25 percent. And nobody can trump the achievement of the group’s technology in developing a low cost way to produce silicon at 99.9999 percent purity!

FerroSolar is the name of this technology: solar grade silicon has hitherto been produced by expensive chemical processes which only yield small quantities – so the main bottleneck in making solar energy feasible has been producing enough solar grade

FerroAtlántica

The Serrabal quartz mine

silicon. “It’s 100 percent our own technology and will allow us to considerably reduce the cost, energy consumption and environmental impact, while greatly increasing production capacity,” Larrea predicts.

One of the most recent additions to the FerroAtlántica family, the largest quartz mine in South Africa with an annual production capacity of 1.3 million tonnes and reserves of 60 million tonnes, was acquired in July 2012 for €25.7 million. SamQuartz, founded in 1955 and now the largest producer of high quality silica in South Africa, is of

vital strategic importance for the group says Larrea. The mine is the biggest quartz mine in South Africa and one of the biggest in the world. “With its purchase we have achieved vertical integration of our industrial assets in South Africa and at the same time guaranteed silicon metal production of the highest purity as well as special ferroalloys for a period of no less than forty years.

The South Africa operations managed by wholly owned subsidiary Silicon Smelters include the arc furnaces of Polokwane Smelters and Rand Carbide, the mining operations

“We also have proprietary technology to manufacture cheaper and cleaner photovoltaic quality silicon metal more efficiently” be mining | 131

of Thaba Chueu Mining (TCM) including SamQuarz, and 9,584 hectares of sustainable tree farms that provide the smelters with charcoal. South Africa’s economy is badly in need of investment to develop its mineral resources, says Jan Coetzee, Marketing and Commercial manager for Silicon Smelters.

“All the investments by FerroAtlántica have supported production of value added products from domestic resources. We employ over

1,000 people directly but to that you can add a further 6,000 indirect jobs. We have calculated that the economic benefit from our operations extends to more than 30,000 people across South Africa.”

The benefit of having multiple local and global facilities is that knowledge and best practices can be shared, says Coetzee. Silicon Smelters is a South African company, but is fully integrated into the FerroAtlántica group.

“The group has transferred world class business principles and skills to its employees in South Africa”

Working at the Monzón facility in Spain

132 | be mining

FerroAtlántica

Worker at the Rand Carbide factory in South Africa

“Activities like marketing, sourcing, financing and benchmarking are done at an international level, and the domestic operations reap the benefit from these activities. The group has transferred world class business principles and skills to its employees in South Africa.”

Needless to say the most active silicon market in the world is China. FerroAtlántica entered this market in 2008 with a JV that created the Ganzi project in Tibet, which is constructing the world’s largest silicon metal factory. In addition to this project, in 2010, it acquired the Mangshi Sinice Silicon Industry Company Limited in Yunnan province, out of administration. The plant was a new one, completed in 2008, but had never run at capacity. Following FerroAtlántica’s purchase of the factory in November 2010, a two-year

investment program of close to €25 million was launched aiming at upgrading the plant, including the introduction of FerroAtlántica proprietary electrode technology and the increase of the nominal capacity of each furnace to 23/24 MW as well as bringing all plant operations to compliance in every respect (health and safety, environmental and technological standards).

The plant restarted operations on schedule in May 2011 and has, according to finance manager Junhua Shen been performing as efficiently as any in the group. Like the South African operation, it will be developing sustainable forestry to feed the furnaces, additionally acquiring land to allow expansion – this factory alone will provide 250 jobs, he says. “With the nearest high school 650

be mining | 133

“It is quite difficult to attract young educated people in remote areas like Mangshi but they are attracted by the training opportunities we offer�

The Clavaux facility in France

134 | be mining

FerroAtlántica kilometres away in Kunming it is quite difficult to attract young educated people in remote areas like Mangshi but they are attracted by the training opportunities we offer.” In 2011 when the plant started up, 15 technicians came over from Europe for six months to train local employees.

Unlike the western silicon market, Junhua Shen points out, the Chinese market consists of more than a hundred producers, and hundreds of agents/traders, creating a great deal of competition. The Chinese market accounts for around half of all global production of silicon, and China’s strategy is to control 50 percent of this supply within its borders – being an indigenous player is not an option for the number one global producer.

Mangshi, a spanking new operation, contrasts with the oldest in the group, acquired in 2005 when their subsidiary FerroAtlántica acquired the French company Pechiney Electrométallurgie, now Ferropem.

The Montricher plant in south-western France was established in 1914 and has been specialising in the production of Silicon Metal through carbothermal reduction of quartz since 1984. The arrival of FerroAtlántica led to a complete revival of its industrial activities says plant director Francis Rateau: “Grupo FerroAtlántica gave us a very clear directions

Silicomanganese

and objectives, which motivated everyone to improve our plant’s performance.” Through investment, process optimisation, employee empowerment, quick decision making all contributed to the turnaround, he says.

Among the improvements seen as a result of more than €10 million invested in this specific plant were an increase in production capacity through upgrading the furnaces, better raw materials handling in a new input facility close to the rail link and reduced emissions through the installation of a new baghouse.

Montricher is a reminder that the hub of FerroAtlántica’s activities lies in Europe, serving European customers. “However our two South African plants serve the Americas and Asia. Furthermore, our Chinese plant gives us great strength in China and reasserts

be mining | 135

The Monz贸n factory in Spain has two Silicomanganese furnaces and two Ferromanganese furnaces

FerroAtlántica our position as the world leader in silicon production”, asserts Rateau with pride. He places his finger on one of the most intractable facts relating to the electrometallurgical industry – that it is highly energy intensive and still relies on competitive energy prices.

“The main challenge is to produce silicon with a positive net energy balance. We consume significant amounts of electricity to produce silicon from quartz extracted from the earth. Our goal is that silicon will ultimately generate a lot more energy than the amount required to produce it initially.”

Nevertheless, faced with an adverse economic situation in the industry and electrometallurgy in particular, a fall in global demand, the pressure of competition or the high cost of electricity, FerroAtlántica Group has done its homework, says Pedro Larrea.

“We have diversified our production, we have invested in our own technology and we continue to invest in international expansion whilst maintaining a 100 percent Spanish identity. We are confident we can continue along our path of growth, diversification and development, we aim to consolidate our global leadership position and continue improving the service we provide to our customers. We are also committed to the professional and personal development of all our employees – and with the rooting of our activities in the social, economic and industrial environment in which they work.”

For more information about FerroAtlántica visit: www.ferroatlantica.es

be mining | 137

company in brief Grupo FerroAtlántica, S. A., is the parent company of a group of businesses in which it holds controlling interests, which, in all cases, permit it to exert effective control over these businesses, directly or indirectly.

The Group currently operates fifteen production centres, working in the field of Electrometallurgy: five in Spain, six in France, one in Venezuela, two in South Africa and one

in China, where the Group intends to build what will be the largest silicon metal factory in the world in the vicinities of the city of Kangding, in Sichuan province.

MANAGEMENT AND DIRECTORS Pedro Larrea Paguaga

Javier Bullón Camarasa

Chairman and Chief Executive Officer

FerroAtlántica R&D Managing Director

Javier López Madrid Vice-Chairman

Miguel Guerrero Aulló

Jean-Philippe Bucher

Managing Director for Administration and Control

FerroPem Chairman and General Development Director

Juan-Carlos Sánchez Recio General Production Director

Santiago Oller Velasco

General Commercial Director

Javier Fernández Bescós General Mining Director

138 | be mining

José María Calvo-Sotelo Ibáñez-Martín Chief Financial Officer

Jorge Beltrán de Miguel Legal Department Managing Director

FerroAtlántica mission

Office

Since its foundation, the fundamental mission of Grupo FerroAtlántica S.A has been to become the most globally competitive corporate group in the Ferroalloys sector.

In this sense, the Group always been fully committed to aspects such as customer service, achieving Total Quality, being self-financing to all possible extent, providing highly competitive prices in all its services and products and acting with the highest levels of corporate responsibility.

Grupo FerroAtlántica also has priorities in terms of operating with the greatest possible respect for the environment and implementing policies to ensure a “zero accident rate” and optimal safety.

Grupo FerroAtlántica has a series of defined policies, which are realised through its business strategies and that constitute the keystone of the Group’s development and growth, including:

Headquarters CUATRO TORRES BUSINESS AREA TORRE ESPACIO Paseo de la Castellana, 259D - 45th and 49th floors 28046 Madrid - Spain

• Internationalisation: The Group has the strategic priority of increasing its international presence (Spain, France, Switzerland, Germany, South Africa, China, Mexico, Brazil and Venezuela) and aims to expand into North America and other countries.

•R &D&I: The Group has received awards for innovation, holds various patents and has important projects underway in the silicon industry, including, notably, the FerroSolar project.

Tel:+ (34) 91 590 32 19 / + (34) 91 590 32 34 www.ferroatlantica.es

Divisions • Electrometallurgy • Energy • Mining • Photovoltaic Solar Power

operating territories • Spain • France • Venezuela • South Africa • China

be mining | 139

Atico Mining

and Copper

gold from Colombia Atico Mining is single-mindedly preparing to rejuvenate the senescent El Roble mine and make it perform better than ever it did in its prime

written by: John o’hanlon research by: abi abagun

140 | be mining

El Roble, surface drill program

Atico Mining

B

ased in Vancouver, Atico Mining (VMS) deposit, the only one currently being Corporation focuses on finding worked in Colombia but similar to very and developing mid-size high- productive sites of a similar nature in Canada grade copper-gold deposits in and elsewhere in the world. “VMS deposits Latin America. The company often come in packs, or clusters,” he explains. was floated on the Toronto Stock Exchange “The fact that we are in an area of 100 square just over a year ago by a team that has long kilometres, where five or six other VMSs are and successful experience in the region and being explored in a 100 kilometre radius includes several members of the Ganoza indicates there is potential for this area to be family which is very much involved in Fortuna like those in Canada, Peru and other VMS Silver which has operations in Mexico as well districts. But here the percentage of sulphide as their home nation Peru. in this mineralisation could be very high, as Atico, however is currently taken up with high as 70 or 80 percent. What you find in just one project, El Roble located near to the the El Roble is more chalcopyrite, carrying town of El Carmen de Atrato 30 percent copper, hence the in the Chocó department of high copper grades.”

Colombia. There is already Mor e i m me d i ate ly, though, Atico has concluded a functioning mine there, that another level containing privately run by local at least as much ore as has company Minera El Roble already been extracted over which over the last couple Ore already extracted the lifetime of El Roble of decades has mined 1.5 from El Roble is lying up to 300 metres million tonnes of ore with below the existing mine. an average head grade of 2.5 percent copper and 2.5 grams per tonne “There are two things that excite us about of gold. Atico has an option to purchase a El Roble,” Ganoza continues. “One is the 90 percent interest in this operation, and is existing mine, which we will continue to hoping to exercise that option during the work, along with the fact we have found course of this year, taking over the current these very high grade resources below the mining operation plus the surrounding mine. That creates the perfect opportunity 6,600 hectares in mining claims. to combine an ongoing operation with The current owner is happy to relinquish newly-found resources that we can take its interest since the levels now being mined advantage of. At the same time we are are nearly exhausted, and to allow Atico to excited about the prospect of finding explore the future possibilities of the mine additional VMSs in the surrounding land and its surrounding areas. And these are package. These can then be developed and considerable, says CEO Fernando Ganoza. fed to the mill and processing facility that El Roble is a volcanogenic massive sulphide is already operating.”

1.5

million tonnes

be mining | 143

High Quality Land Gravity Surveys - Worldwide MWH Geo-Surveys is a geophysical service group which has been successfully providing practical and costeffective GRAVITY SURVEYS for mining, petroleum and geothermal exploration since 1980.

• All digital land gravity surveys • Proprietary gravity /GPS data collection system • Committed to precision field work in even the most demanding of environments around the world • Overriding commitment to consistent, safe and reliable survey quality • Gravity surveys performed in over 31 countries, on 5 continents; with over 700,000 gravity stations collected to date by dedicated field staff

US: 1 775-722-0616 | Canada: 1 250-542-9897 www.mwhgeo.com

Atico Mining The existing mill has MWH Geo-Surveys daily capacity of 400 tonnes.

MWH Geo-Surveys specializes in high precision gravity Atico will need to grow this surveys. Using digital ‘feedback’ micro-gravity instruments capacity. “The first expansion combined with millimeter precision GNSS positioning will be relatively small – a and a digital terrain mapping system, our gravity surveys 40 to 50 percent increase to can efficiently and accurately map your density specific maybe 600 tpd. At the same exploration properties.

MWH has developed a data logging system that wirelessly time we will be optimizing captures the digital gravity meter output and integrates the the operation in terms real-time GNSS positions to enhance survey productivity of productivity. Right now and accuracy. the throughput is 350, For over thirty years our operations have spanned the globe and we want to take it up to including some of the world’s most challenging environments.

600 tonnes.”

With knowledge, experience and technology we can provide So t he c u r r e nt gravity surveys in a safe and cost effective manner. www.mwhgeo.com infrastructure will be retained and improved, but the deeper levels will be accessed with different infrastructure, designed from the outset to support throughput of up to 600 tpd. “We will be trucking ore from inside the mine, which means you have to have another dimension of tunnelling.” This will be a much more sophisticated operation than the existing one, which uses LHD (load-hauldump) equipment. However the new stopes will use mechanised cut-and-fill methods.

Modern mining, he hopes, will address one anomaly that has shown up in the mine, which has been producing at a grade lower than the historical resource that Kennecott defined

“VMS deposits often come in packs, or clusters”

El Roble mine, flotation circuit

be mining | 145

back in the 1980s at 4.8 percent copper and 3.2 g/t gold. Actual yields have come in at 2.5 percent and 2.5 g/t respectively, but this is probably explained simply by dilution: too much extraneous rock is getting mixed in with the extracted ore. The new El Roble will be better equipped to deliver the high grades the geologists are finding.

However the existing infrastructure at the level currently being mined – called the 2000 level because it is 2,000 metres

above sea level – can be used productively in the new 1800 level. The shafts can be used to bring additional access points into the mine, bring in services like electricity, water and air, and provide alternative safety. “We will add a lot of years to the life of the mine with these new resources, but there needed to be investment to reach these resources and mine them efficiently,” he summarises. “The current owner doesn’t want to make that investment, and lacks

“Mines have a finite life and we worry that El Carmen de Atrato’s dependence will only increase, so we need to do everything in our power to mitigate that” 146 | be mining

Atico Mining

El Roble mine, Colombia

the sophistication it needs, which is why the association with us makes sense.”

Atico’s directors are from South America and are here for the long term. Colombia has become a lot more secure in the last decade, though in its 22 years of operation El Roble, on the edge of its most stable province Antioquia, never experienced any problems.

However El Carmen de Atrato has become very dependent on El Roble, with 50 percent of its economic activity directly related to the mine. “Our vision for this property is that it will become a much bigger operation - we believe this could be a very important mining centre. But mines have a finite life and we worry that El Carmen de Atrato’s dependence will only increase, so we need to do everything in our power to mitigate that.”

The idea is to make El Carmen de Atrato

self-sufficient by the time the mine closes.

Atico Mining, he reveals, as already knocking on the doors of government departments, local authorities and NGOs to start schemes to develop local agricultural, engineering and service businesses that can take over as an alternative to El Roble, which already employs 35 local people in connection with its ongoing surveying and drilling work.

But for now Fernando Ganoza’s energy is completely taken up with this year’s gamechangers for Atico – purchasing the mine and getting the mill in shape to double its current throughput.

For more information about Atico Mining visit: www.aticomining.com

be mining | 147

company in brief Atico Mining Corporation (Atico) is a copper and gold exploration and development company.

Atico is focused on mining opportunities in Latin America. The Company’s primary exploration project is the El Roble Property. The El Roble Property is a copper and gold mine with surrounding exploration ground located in the western cordillera of Colombia, within the Choco Department. The El Roble Property consists of eight adjacent titles and title applications totaling 8,361.60 hectares. The El Roble Property had a mine, which produced approximately 4,000 wet metric tons of copper concentrate. The Company’s wholly owned subsidiary is Atico Mining Corporation Colombia S.A.S.

MANAGEMENT AND DIRECTORS Jorge A. Ganoza Durant

Kim C. Casswell

Chairman of the Board

Corporate Secretary

Jorge R. Ganoza Aicardi

Luis Dario Ganoza Durant

President, Director

Director

Fernando E. Ganoza

Michael D. Winn

Chief Executive Officer

Director

Christina Cepeliauskas

David L. Miles

Chief Financial Officer

Independent Director

Thomas Kelly

Mario D. Szotlender

Chief Operating Officer

Independent Director

148 | be mining

atico mining stock watch

Investment highlights

Exchange CVE

Shares 39.76M

Symbol ATY

Market Cap. 23.46M

Currency CAD

Div/yield -

• Proven team of mine developers and mine operators • Industry expertise and regional network • Focused on developing and operating high margin mid sized Cu – Au deposits • Near-term production and cash generation at El Roble mine • Upside at El Roble mine’s underexplored large land package with multiple geochemical and geophysical VMS anomalies

products • Copper • Gold

Offices

operating territories

Corporate Headquarters Suite # 501 543 Granville St. Vancouver, BC V6C 1X8

• Columbia

Tel: +1.604-633-9022

Q3 (Sep ‘12) 2011 Net profit margin - Operating margin - EBITD margin - Return on average assets -9.32% -68.88% Return on average equity -9.69% -399.58%

El Roble Project Carrera 30 # 10 C 228 Oficina 529 Interplaza Medellín, Colombia

Key stats and ratios

Tel: +57.4.266.2454 www.aticomining.com

Financial information from Google Finance and Thomson Reuters

be mining | 149

Simply ore-ins

A monumental project, possessing over seven billion metri tonnes of iron ore reserves, the Carajås Iron Ore Mine is one of South America’s most exciting ongoing developmen

150 | be mining

Vale Brazil: Carajรกs Iron Ore Mine

spiring

written by: Will Daynes research by: Abi Abagun

ic

nts

be mining | 151

Iron ore dry beneficiation plant, a new technology developed by Vale

Vale Brazil: Carajás Iron Ore Mine

T

he most widely used of all minerals, iron accounts for approximately 95 percent of the world’s metal production in terms of weight. As the world’s third largest iron ore producer and exporter, Brazil has long reaped the financial benefits provided by one of its largest export products.

The Carajás region of the country boasts some of the richest reserves and concentrations of iron ore anywhere on the planet, with the Carajás Mine, located in the state of Pará in Northern Brazil, holding the distinction of being the world’s largest iron ore mine.

Fully owned by Vale, the mine holds up to 7.2 billion metric tonnes of iron ore in proven and probable reserves.

The Carajás Mineral Province was originally discovered entirely by accident when a US Steel helicopter was forced to land on a hill in the area to refuel in 1967, with the first iron ore mine called N4E Mine coming into operation in 1985. In the mine’s first year output reached one million metric tonnes of iron ore, which was processed at a semiindustrial plant. During the second year an industrial-scale processing plant was brought online and this resulted in production rising to 13.5 million metric tonnes of final product.

Mining operations in Carajás are open-pit, with 15-meter-high benches. The off-highway trucks that Vale uses, each capable of carrying loads of over 240 metric tonnes, unload ore at crushing facilities located inside the mines.

After this, the material is transported on conveyor belts for further processing.

At this stage, the ore is crushed once more and classified using screens, cyclones

be mining | 153

Vale Brazil: Carajás Iron Ore Mine

Operational Control Center in Carajás

and spiral classifiers. The end result is have come under environmental scrutiny. three classes of products, these being Operations at the Carajás iron mines conform sinter feed, pellet feed and lump ore. Now to an environmental quality management spanning five simultaneous open-pit mine system that has been implemented, and operations, the Carajás Mining Complex is certified, to ISO 9000 and ISO 14001 standards and procedures. produces approximately Vale’s activities in Carajás 300,000 metric tonnes of include an extensive iron ore per day and was programme to restore responsible for producing vegetation on former mining a record 109.8 million sites using species that are metric tonnes in 2011, an native to Carajás National increase of 8.5 percent on the year before.

Forest. Meanwhile, the With its mines located company also maintains Metric tonnes of proven a well-structured inside the 400,000 hectare and probable reserves Carajás National Forest, Vale’s environmental monitoring inside the mine operations understandably network that systematically

7.2

Billion

be mining | 155

evaluates aspects such as air quality, noise pollution, vibrations and water quality.

In partnership with the Chico Mendes Institute for Biodiversity Conservation (ICMBio), Vale contributes to managing

Carajás National Forest and the development of research, thereby expanding overall knowledge of the region’s biodiversity.

Just as importantly, this partnership also enables work to occur that monitors and

“Vale’s activities in Carajás include an extensive programme to restore vegetation on former mining sites” 156 | be mining

Vale Brazil: Carajás Iron Ore Mine

Iron ore beneficiation plant

fights forest fires.

Vale is also proud to be in partnership with not only ICMBio, but Brazil’s environment regulator, Ibama, as well in their work to help conserve an area of forest that spans around 1.2 million hectares, three times the size of the Carajás National Forest and ten times the size of the state capital of Pará.

One of the more recent developments involving the mine is the Carajás S11D iron project. The project represents an expansion in iron ore mining and processing at the Carajás Mining Complex. Continuously,

since it first began operations back in 1985, the complex has produced the best quality iron ore in the world, which has been supplied to both the domestic and international markets. Similarly during that time Vale’s presence in the municipalities of Parauapebas and Canaã dos Carajás in southeast Pará has underpinned a strong cycle of economic and social development in Brazil’s North region.

The Carajás S11D iron project has a key role to play in a new cycle of sustainable development in the states of Pará and

be mining | 157

Off road truck with 400 tons of loading capacity

Vale Brazil: Carajás Iron Ore Mine Maranhão, and in the continuation of Brazil’s position as a major player in the global iron ore market. S11D will ultimately produce 90 million metric tonnes of iron ore per year, meaning that upon reaching full capacity, Vale’s total ore production in Pará will have reached approximately 230 million metric tonnes per year.

This ore will help meet the growing global demand for iron that is being generated by rising investment in construction and in the production of machinery, equipment, aircraft, mobile phones and other essential everyday products that are central to our way of life.

Together with the other projects that are planned to come on-stream in the region, the new mine will help place southeast Pará on the same level as the iron quadrangle region in the state of Minas Gerais.

As Vale looks to the future of its Carajás iron ore mine activities, it is abundantly clear that the S11D project is at the heart of its plans and ambitions. The S11D project, named after its location, ore body S11, block D, is easily one of the most exciting developments occurring anywhere in South America. The mining potential of ore body S11 equates to ten billion metric tonnes of iron ore, while block D alone contains 2.78 billion metric tonnes of reserves that will be mined by Vale. It is believed that this project alone will enable Vale to maintain its leading position in the global iron ore market for many years to come.

For more information about Vale Brazil: Carajás Iron Ore Mine visit: www.vale.com

be mining | 159

company in brief Vale SA (Vale) is a Brazil-based metals and mining company. The Company services are divided into four segments: Bulk Material, including the extraction of iron ore, manganese and ferroalloys, as well as pellet production; Basic metals, comprising the production of nonferrous minerals, including nickel, copper and aluminum; Fertilizers, including the production of potash, phosphate and nitrogen; and Logistic services, including cargo transportation for third parties divided into rail transport, port and shipping services. Additionally, Vale is active in investments in joint ventures and associate in

other businesses. The Company operates in more than 38 countries, including mineral exploration activities in 21 countries. As of December 31, 2011, the Company operated through 18 subsidiaries and three jointly-controlled entities, incorporated in Brazil, Peru, Indonesia, Chile, Australia, Austria, Canada, Colombia, Switzerland, Mozambique, New Caledonia, Oman, Singapore and the USA.

MANAGEMENT AND DIRECTORS Dan Antonio Marinho Conrado Chairman of the Board

Murilo Pinto de Oliveira Ferreir Chief Executive Officer, Member of the Executive Board

Mario da Silveira Teixeira Jr.

Marcus Vinicius Dias Severini irector of Controlling Department, D Member of the Executive Board

Roger Allan Downey Fertilizers and Coal Operations Marketing Officer, Member of the Executive Board

Vice Chairman of the Board

Jose Carlos Martins

Luciano Siani Pires

Ferrous Operations Marketing Officer, Member of the Executive Board

Chief Financial Officer, Investor Relations Officer, Supplies and Shared Services Officer, Member of the Executive Board

Marcelo Botelho Rodrigues Global Director of Controlling, Member of the Executive Board

160 | be mining

Vania Lucia Chaves Somavilla Human Resources Officer, Health & Safety Officer, Sustainability & Energy Officer, Corporate Affairs Officer, Member of the Executive Board

vale sa stock watch

Office Corporate Office 12 andar, Av. Graca Aranha, 26, Centro RIO DE JANEIRO, 20030-900 Brazil Tel: +55-21-38144540 Fax: +55-21-38149935

Exchange NYSE

Shares 5,153.37M

Symbol ADR

Market Cap. 83,020.87M

Currency USD

Div/yield 0.39/5.08

www.vale.com

products • Iron ore • Manganese • Ferroalloys • Nickel • Copper

• Aluminum • Potash • Phosphate • Nitrogen

Investment highlights

operating territories

•O perating revenues totaled US$ 11.2 billion, decreasing 10.7% over 4Q12. The reduction was primarily due to the effect of lower volumes.

• Brazil • Peru

• Underlying earnings in 1Q13 were US$ 3.2 billion, equal to US$ 0.62 per share on a fully diluted basis, against US$ 2.0 billion in 4Q12, net of the accounting effects of non-cash non-recurring items and US$ 3.6 billion in 1Q12. Higher tax payments and lower monetary and exchange variations are the main reasons for the yearly decrease in underlying earnings, more than offsetting the higher adjusted EBIT.

• Indonesia • Chile

Key stats and ratios

Q1 (Mar ‘13) 2012 Net profit margin 27.91% 13.11% Operating margin 38.01% 19.34% EBITD margin - 39.61% Return on average assets 9.28% 4.81% Return on average equity 16.70% 9.33%

Financial information from Google Finance and Thomson Reuters

be mining | 161

162 | be mining

Perseus Mining

A PROMISE IS A PROMISE West Africa still hosts mineral deposits that for one reason or another have remained underdeveloped: for certain Australian prospectors they became an obsession that is now paying off

written by: John O’Hanlon research by: Robbie Hodgson

be mining | 163

A bar of gold being weighed

Perseus Mining

P

erseus Mining is very much a team effort: an overnight success that was 25 years in the making, as one of its founders Mark Calderwood has described it. Calderwood, the current chairman Reg Gillard and exec director Colin Carson have been taking an active interest in the under-explored mineral deposits of West Africa for that long, but it was not until 2004 that, having secured a couple of gold bearing deposits in Ghana, Côte d’Ivoire and the Kyrgyz Republic that they formed a company and floated it on the ASX. Since then things have moved forward quite quickly despite a couple of years of quiescence while world markets were depressed and trying to sort themselves out. In 2006 it acquired the tenements that today host its Edikan Gold Mine, though exploration and feasibility work could not really get under way till 2009. By 2010 though the company had successfully recapitalised, obtained a positive full feasibility study and started to build its flagship project, the Edikan mine in Ghana’s rich Ashanti gold belt.

It was just before the start of project development that Jeff Quartermaine joined the team as CFO. Up till then, he says, the company had been brought forward by a team whose main expertise lay in exploration and business development – and they were good at it, having grown the resource from about 130,000 ounces of gold at the time of acquisition to almost eight million ounces today. But they were not blind to the fact that along the development curve different skills are needed. In 2011, shortly before

be mining | 165

WE SERVE OUR CUSTOMERS WITH DIRECT CONSOLIDATIONS DHL Global Forwarding, your first-choice answer to the complexities of international freight forwarding with local expertise. www.dhl.com

EXCELLENCE. SIMPLY DELIVERED.

Perseus PERSEUS Mining MINING Edikan wentMining into commercial Perseus feature nostrud exercitation ullamco production, team was laboris nisi ut aliquip ex text to go the here.....Lorem joined Jon Yelland Chief ea commodo consequat. ipsumby dolor sit asamet, Operating andelit, in Duis aute irure dolor in consectetur Officer adipisicing February Quartermaine reprehenderit in voluptate sed do 2013 eiusmod tempor succeeded Mark Calderwood incididunt ut labore et dolore velit esse cillum dolore as Managing magna aliqua.Director Ut enimand ad eu fugiat nulla pariatur.

CEO. three years have minim“In veniam, quis we nostrud Excepteur sint occaecat come from being a junior to a exercitation ullamco laboris cupidatat non proident, sunt fully gold nisi utintegrated aliquip exmid-tier ea commodo in culpa qui officia deserunt producer,” says.aute irure consequat.heDuis mollit anim id est laborum.

The new boss certainly does dolor in reprehenderit in This is a caption this is a caption Lorem ipsum dolor sit amet, not regret accepting consectetur adipisicing voluptate velit esseGillard’s cillum of pitincididunt at Edikan Mine invitation comenulla on board. tempor ut dolore eu to fugiat pariatur. Excepteur elit, sed do eiusmod View “We comecupidatat a long way in proident, sunt labore et dolore magna aliqua. Ut enim ad sint have occaecat non problems with thequis processing towards the last few my initial assessment in culpa quiyears, officiaand deserunt mollit anim id minim veniam, nostrudplant exercitation of people behind outamet, dead the end oflaboris 2012: nisi the mine still managed estthe laborum.

LoremPerseus ipsum turned dolor sit ullamco ut aliquip ex ea right – it is a first-rate team.

Perseus to produceconsequat.

51,000 ounces gold in Q4 at consectetur adipisicing elit,One sedthing do eiusmod commodo Duis of aute irure dolor has done without exception is dolore to always try an all-in site cost $1,060 velit an ounce, well in reprehenderit in of voluptate esse cillum tempor incididunt ut labore et magna industry average.

The Excepteur first three to deliverUtonenim its promises.”

Thisveniam, despite some aliqua. ad minim quis below dolore the eu fugiat nulla pariatur.

DHL GLOBAL FORWARDING

“Are you looking for a consistently reliable and respected logistics company to take care of your Mining sector needs? How about one which has built up decades of experience in Air,

Ocean, Customs, Projects and Warehousing and Distribution? With the increase in regional natural resources interest, mining logistics have been a key focus of DHL Global Forwarding (DGF) for a number of years, and we have built up strong relationships with Mining Houses, Consultants, EPC/EPCM’s, OEM & other Suppliers. We at DHL DGF offer value propositions which are common to all six phases of mining activity – Exploration, Feasibility Study, Construction, Commissioning, Operation & Decommissioning. www.dhl.com

beBEmining WEEKLY| 167 |2

Tel: +27 12 345 3335 Fax: + 27 86 6609354 Email: muchinaeng@telkomsa.net or info@muchinaengineering.co.za www.muchinaengineering.co.za

Muchina Engineering started out

as a supplier to two mines in Zambia mainly supplying pumps mechanical seals and gaskets.

Over the years we have learnt how the mines work and understand all their special needs.

This has allowed us to branch out in to various projects. We now supply 8 mines across Africa including Perseus mining in Ghana.

Our products: • Pumps • Pumps Spares/Repairs • Mechanical Seals • Gland Packing • Gaskets • General Supplies

Perseus Mining months of this year were a record quarter, continuing As a subsidiary of Associated Pump Engineers UK Ltd, remediation work on the Muchina Engineering are suppliers of mechanical seals, plant notwithstanding, and pumps, gland packing and gaskets. Muchina Engineering the first year’s production are the sole distributors of Gusher pumps in South Africa, a great success. “We are and as from 2010 we are now the sole distributors for on track and the future is Beresford pumps throughout Africa.

In 2008 Muchina Engineering, in conjunction with looking very promising,” says Associated Pump Engineers UK, invested one million dollars Quartermaine. changing from traditional sand castings to investment Ghana, and West Africa castings for our impellers and casings. generally, is not such a risky The vision of our company represents us with an incredible place to do mining business foundation, an underpinning which gives us confidence, in as you might imagine. strength and insight as we continue to be a leader in the “We have worked hard to growing premium pump and seals industry. www.muchinaengineering.co.za forge good relations with the government and our host communities, but I think it is interesting when people talk about the political risk of mining in Africa: I don’t think the risks are that much higher than in many other regions.” The MRRT or super profits tax introduced in Australia from July 2012, he suggests, makes Perseus’s base country as challenging a business environment as any, and Ghana in particular has a very forwardlooking regime when it comes to co-operation with the mining companies.

muchina Engineering

250,000 ounces

Annual gold production projected at Edikan Water quality monitoring at Edikan Mine

be mining | 169

THEODORA ASUBONTENG ENTERPRISE, is a multi-faceted business that has a reputable history of excellent services to big-scale corporations such as the mining industry and our strong dedication to perfection and quality makes us a very viable enterprise to do business with.

THEODORA ASUBONTENG

We supply Household items such as: • Bedsheets • Duvert and duvert covers • Towels • Blankets • Towels • Shower curtains • Door mats • Bed mats • Cutlery sets • Glasses • Blenders • Irons • Microwaves • Rice cookers • Kitchen knives • Kitchen napkins • Mosquito nets • Refrigerators • Television sets We also supply Mining gear such as: • Workers’ Overalls • Reflector Vests • Raincoats • Safety Goggles • Ear plugs • Protective Gloves • Nose guards We also provide Interior Decoration services like: • Curtains • Window blinds • Venetian blinds • Carpet layering • Room furnishing (furniture) We are also Event Organisers for occasions like: • Weddings • Parties • Official Ceremonies Beauty in Virginity: • We also support orphans and vulnerable children

ADDRESS: P.O. Box 2136, Sunyani, Ghana.

LOCATION: Ground Floor of Cocoa House, Sunyani, Ghana.

TELEPHONE: 233208120256/ 233243109618/ 233352023646/ 233208149554 E-MAIL: bevin2004gh@yahoo.com

PERSEUS Mining MINING Perseus Perseus Mining Perseus feature Lorem ipsum dolor sit amet, In reciprocation text to go here....Lorem consectetur adipisicing elit, has been assiduous in ipsum doing dolorright sit amet, consectetur sed do eiusmod tempor the thing by the host incididunt ut labore et dolore adipisicing elit,Ghana sed has do country.

Because eiusmod ut magna aliqua. Ut enim ad a longertempor historyincididunt of mining laboremany et dolore magna aliqua. minim veniam, quis nostrud than other countries, Ut suffered enim ad more minimwhen veniam, exercitation ullamco laboris it the nisi ut aliquip ex ea commodo quis nostrud mining boom hitexercitation South Africa ullamco laboris nisi ut on aliquip consequat. Duis aute irure and other countries the ex ea commodo dolor Sackey, in reprehenderit in continent and all consequat. round the Environment Manager, Michael on the revegetated Duis aute irure dolor in voluptate velit storage esse cillum main embankment of the tailings facility world.

Its best brains were reprehenderit inbyvoluptate drained, tempted the high This is a caption this is a caption dolore eu fugiat nulla velit esse cillum dolore Excepteur sint salaries being offered.

This eu created a shortage trying to recruit pariatur.

Ghanaians from the diaspora fugiat nulla pariatur.

Excepteur sint occaecat non proident, sunt in of experienced professionals back home, and occaecat into seniorcupidatat jobs. cupidatatis non proident, sunt inby culpa qui culpa qui officia deserunt mollit anim id Perseus trying to redress this actively Of course it would be unrealistic to seek officia deserunt mollit anim id est laborum. est laborum. Lorem ipsum dolor sit amet,

THEODORA ASUBONTENG ENTERPRISE THEODORA ASUBONTENG ENTERPRISE has an N.G.O. called “BEAUTY IN VIRGINITY� which seeks to promote Moral values and discipline among the youth in Ghana.

A chief aim of our N.G.O. is to mobilize, educate and assist virgins to maintain their virginity till marriage.

We also serve as an active voice towards HIV/AIDS sensitization and awareness among the youth in various communities in Ghana.

Some of our achievements in this regard include: A joint collaboration with Perseus Mining Ghana on World AIDS Day in 2012 where we visited schools in the Ayamfuri community to educate and sensitize the youth about HIV/ AIDS and its deadly effects and how they can protect themselves.

A two day HIV/AIDS Sensitization Workshop

for sixty (60) Queens and Opinion Leaders, Long Distance Drivers, Traders and Teachers sponsored by the UN System Gender Program. A Workshop/Quiz was organized for in and out school youth on behavioural modification strategy on HIV/AIDS sponsored by the Ghana AIDS Commission.

At THEODORA ASUBONTENG ENTERPRISE, we are contracted to PERSEUS MINING GHANA LIMITED as a supplier of general goods and interior decoration.

At THEODORA ASUBONTENG ENTERPRISE, we have also been a supplier and Interior decorator for NEWMONT GHANA GOLD LIMITED for about seven (7) years.

E. bevin2004gh@yahoo.com

WEEKLY| |1712 beBEmining

The reliable choice for Nitrogen and Oxygen Generation

Unique Nitrogen & Oxygen Generators from IGS. The nitrogen generators and oxygen generators from IGS combine first-class quality with a competitive price and low cost-of-ownership.

Proprietary Technology.

Our advanced Pressure Swing Adsorption processes for nitrogen or oxygen production set market standards in terms of performance and reliability.

Heavy Duty Design.

Our oxygen generation packages have demonstrated to operate flawlessly, even under extreme ambient conditions in artic or desert environments.

International Presence.

No matter where your project is located, our IGS service organization will always be near for competent and quick technical support.

Reliable Business Partner.

When we promise something, we deliver.

Tel: +39 (0564) 45 80 41/42 | Fax: +39 (0564) 45 80 43 | E-Mail: info@igs-italia.com | www.igs-italia.com

Seen Suppliers of high-grade quicklime and hydrated lime for the mining, water treatment, road building, agricultural and oil industries.

An efficient and well trained workforce coupled with a quality management system ensures customer satisfaction.

For enquires please contact: Tel: +233 31 46054/46565/46886 Email: carmeuse@carmeuseghana.com www.carmeuse.com

LIME...THE PROVEN SOLUTION

Contact us today and put your company in the spotlight!

vincent@bus-ex.com

Perseus Mining IGS Italia

IGS Italia is the European engineering and manufacturing subsidiary of Innovative Gas Systems (IGS) with HQ in Houston TX. IGS is worldwide one of the major suppliers of non-cryogenic air and gas separation plants and instrument air packages. The patented proprietary hollow-fiber membrane technology from IGS sets market standards in terms of performance and efficiency for nitrogen production, gas separation or air dehydration. IGS Italia not only designs and manufactures standard systems, like its patented NITROSWING® and OXYSWING® modular PSA nitrogen and oxygen

experienced personnel in the surrounding community, so it is remarkable to learn that approximately 50 per cent of the workforce at Edikan is drawn from the five villages nearest the mine. “We could have drawn staff from mining operations elsewhere in Ghana,” says Quartermaine, “but we decided that while recruiting locally meant we’d have to spend more on training, it would put money into the local community and increase their engagement with the operation.”

Training local people from scratch has the added advantage that they understand how Perseus operates, he adds. “We went out and

generators, but also offers finely engineered and custom-built packages for nitrogen and oxygen generation, gas separation or instrument air supply. IGS’ scope of supply for standard systems can also be extended with complete turn-key installations on either a single skid or inside an ISO freight container, including feed air system and all necessary receivers. IGS Italia distributes its products and services to the market also through IGS’ Global Sales & Service organization with offices in Germany, Russia, UAE and South Korea. www.igs-italia.com

Geologist Emmanuel Djorjee reviewing cores

“while recruiting locally meant spending more on training, it put money into the local community and increased their engagement with the operation” be mining | 173

Reach for Aducolly Eng. Ltd. for your first-rate engineering services in maintenance welding & steel fabrication, pump installation, tank building, pipe welding & installation, cladding, conveyor servicing and steel structure erection.

Contact us on eaducolly@yahoo.com or 233 0243 207 616

POLYTEX INDUSTRIES LTD. POLYTEX INDUSTRIES LTD. HEAD OFFICE: P.O. BOX 5268, ACCRA NORTH, GHANA LOCATION: NO. 9 DADEBAN ROAD, NORTH INDUSTRIAL AREA, KANESHIE, ACCRA, GHANA Tel: +233(0) 302 228891 / +233 (0) 302 233149 Fax: +233 (0) 302 2251233 Mobile: +233 (0) 244 331323 Direct Line: +233 (0) 302 233 148 Email: polytex9@hotmail.com Mr Dayal Rijhumal Thawani - (CEO/MD)

• - LDPE Bags (Plain/Printed) • - HDPE Bags (Shopping Bags) • Mining Bags • Sampling Bags • Nursery Bags • Cocoa/Oil Palm Bags • Cocoa/Butter Bags Liner • Cocoa Liquer Liner • Water Sachet Rolls • Shrink LD Rolls • PP Woven Sack (For Rice/Maize/Fertilizer and General Packaging) Our Superior Performance & High Quality Standard.

With 25 years of Industrial Leadership in Plastic & Packaging Products.

We respond quickly and timely to your needs/orders.

Proud suppliers to the Perseus Ayanfuri project

Perseus Mining did aptitude tests to identify Aducolly Eng. Ltd who would be best suited to Aducolly Eng. Ltd. also deliver to your specification in areas the challenge of working in such as belt splicing hot & cold, poly pipe welding, sand our operation. I was fortunate blasting & painting, agitator shaft/crush mantle building as to be on site the day the first well as apron feeder installation among others. We stand trainees arrived and had the distinguished by our level of commitment to duty and how honour of welcoming them to well we delight our clients with excellent customer service beyond their imagination. the site.� There were around educolly@yahoo.com a hundred young men and women, he says, all mightily enthused at the opportunity to become a part of a serious operation within their own community and at having the chance to learn new skills.

Quartermaine believes the best way to generate sustainability is through education because it equips people make their own choices.

Over the last two years Perseus has sponsored 90 students at Kumasi Technical Institute (KTI), instituted a scholarship scheme for students in the Edikan communities to further their education in second and in the future, tertiary institutions in the country and announced a sixmonth apprenticeship programme to train 120 young people in masonry, carpentry, electrical installation and plumbing.

Meanwhile his objectives for this year remain firmly to deliver on what has been promised, or at least planned. The process plant will be upgraded to increase throughput from its A view of the Edikan plant

“the best way to generate sustainability is through education because it equips people to make their own choices� be mining | 175

H-Logistics is a cutting-edge global procurement company delivering a premium service supplying the mining, engineering and construction industries.

H-Logistics Ltd Caldwellside Industrial Estate 5 Young Road, Lanark, ML11 7SR, Scotland, United Kingdom T: +44 (0)1555 665560 E: sales@hlogistics.co.uk W: hlogistics.co.uk

Intereactive Mapping solutions

Geovatis™ specialize in Corporate Social Responsibility Solutions.

Our services are: • Preparing baseline maps on Land use • Acquire, digitise existing features from Aerial/Satellite imagery during land access project preparation • Deploy web based software solutions to manage Land acquisition and payment process for Resettlement projects • Deploy interactive maps (GIS) that is accessible to all project management team • Mange Outsourced Compensation/Resettlement data processing • Training and couching • Onsite/Offsite support services to clients 24/7/365.

• Audit existing data management processes and tools Contact: [+233] 242.265.542 | [+233] 200.796.577 [+233] 269.963.388 Email: daniel@geovatis.com | www.geovatis.com

Perseus Mining H-Logistics

H-Logistics is a cutting-edge global procurement company proud to be working in partnership with Perseus Mining, delivering a premium service supplying the mining, engineering and construction industries.

Providing procurement, order consolidation, government inspection and warehousing for air/sea freights and urgent courier consignments, our clients can access our trusted network of quality suppliers and consultants worldwide. With partners including Caterpillar, Hitachi, Komatsu and Liebherr to name a few, H-Logistics offers an inexhaustible range of premium

brands, including PPE, 4x4 Vehicles, Tyres & Mining Consumables which can stand up to the rigours of these demanding industries often operating in remote locations. High volumes and excellent trading terms with our partners keeps our pricing competitive.

When machines are down every second counts, time is money, H-Logistics minimise interruptions to our clients critical supply chain. Integrity and efficiency coupled with low overheads sets us apart from the crowd.

Trust H-Logistics, we have the power to deliver on time anywhere in the world. www.hlogistics.co.uk

present level of 5.5 million tonnes per annum to eight million tonnes per annum by July 2013.

From that point he expects gold production to go forward at a rate of some 250,000 ounces a year, with costs kept low so that the company can generate a substantial cash margin. Gold prices may be past their peak, but following this policy will keep Perseus in business where high cost producers crash out, benefiting proportionally when prices rally.

With the world class Edikan mine at full throttle, the subsidiary property in the Ashanti belt, Grumesa 20 kilometres to the east, is taking a back seat though drilling continues

50% Gold Room operator cleans slag residue from a bar of gold

Of workforce from just five local villages

be mining | 177

there. Any spare energy is being diverted to the Sissingué Gold Project in north-east Côte d’Ivoire. Only perhaps 300 miles distant, they are very different. If Ghana is switched on to its resources, its neighbour has less of a mining tradition though Quartermaine thinks it could vastly benefit from development. Following a very difficult and unsettled era, the country is now working very hard to upgrade its mining code so it presents a more attractive investment than its neighbours. But late last year, when the Perseus board was preparing to give the green light to construction of the fully permitted and funded Sissingué project, the Ivorian government started to talk about a super profits tax.

While not denying their need to benefit from their resources, developing governments sometimes overlook the need of overseas investors to see a fair return. So Perseus along with the rest of the world’s mining community is waiting to see what the awaited mining code will contain. “We would be delighted to be able to get into mine development in the second half of this year, with first production in the second quarter of 2014. But,” says Quartermaine, ever the prudent professional accountant, “we won’t commit if we are not certain we can achieve the kind of returns we need.”

However Sissingué is projected to 170,000 ounces of gold a year, at low cost.

Adding this project to Edikan would firmly establish Perseus among the leading West African gold producers.

For more information about Perseus Mining visit: www.perseusmining.com

178 | be mining

Molten gold in crucibles following a gold pour at Perseus Mining’s Edikan Gold Mine

Perseus Mining

company in brief Perseus Mining Limited (ASX/TSX Code: PRU) has forged a reputation as one of the world’s most successful gold explorers. Focused on under-explored gold belts in West Africa, we achieved our goal to become a producer during 2011 and started commercial production on 1 January 2012.

Our Edikan Gold Mine (EGM), formerly referred to as the Central Ashanti Gold Project (CAGP) and Ayanfuri, has 5.6Moz of Measured and Indicated gold resources, including reserves of 3.4 million ounces of gold, and 1.7Moz Inferred gold resources.

A further 1.4Moz of Indicated gold resources, including 0.66Moz of Reserves, and 0.52Moz of Inferred gold resources are held on our other

West African projects (Grumesa and Tengrela).

We started production from the Edikan Gold Mine in Ghana in the 3rd Quarter of 2011. If proven economic by the current feasibility study, the Company is targeting production at the Sissingue Gold Project in Cote D’Ivoire in 2014.

MANAGEMENT AND DIRECTORS Jeffrey A. Quartermaine

Susmit Mohanlal Shah

Chief Executive Officer, Managing Director, Executive Director

Company Secretary

Jon Yelland Chief Operating Officer

Independent Non-Executive Chairman of the Board

Rhett Boudewyn Brans

Michael Andrew Bohm

Executive Director

Independent Non-Executive Director

Colin John Carson CPA

Neil Christian Fearis

Executive Director

Independent Non-Executive Director

Kevin Peter Thomson

Terence Sean Harvey

Exploration Manager

Independent Non-Executive Director

180 | be mining

Reginald Norman Gillard

perseus mining stock watch

Office Corporate Office Level 2, 437 Roberts Road Subiaco, Western Australia 6008 Australia Tel: +61 8 6144 1700 Fax: +61 8 6144 1799 Email: info@perseusmining.com

Exchange ASX

Shares 457.96M

Symbol PRU

Market Cap. 526.66M

Currency AUD

Div/yield -

Investment highlights • Available cash at 31 March 2013 was $38.4M plus bullion holdings on site and at refinery totalled 16,237oz valued at a further $25.1M – slight increase over previous Quarter •A further $9.1M cash on deposit for environmental commitments • Undrawn line of credit with a limit of US$100M with term to December 2015 •A ssociated hedge commitment reduced to 193,000oz at average of US$1,389/oz including 70,000oz for delivery in 2015 at US$1,600/oz

www.perseusmining.com

products • Gold

operating territories • Ghana • Ivory Coast

Key stats and ratios

Q1 (Mar ‘13) Net profit margin -1.16% Operating margin 0.71% EBITD margin - Return on average assets -0.69% Return on average equity -1.08%

2012 33.60% 38.57% 46.89% 11.51% 16.28%

Financial information from Google Finance and Thomson Reuters

be mining | 181

182 | be mining

Eldorado Gold

Adding value through exploration Vice-president and general manager for Greece, Eduardo Moura, discusses how the company’s activities in the country are playing a fundamental part in helping to achieve its goal

written by: Will Daynes research by: Jeff Abbott

be mining | 183

Eldorado Gold

I

Rehabilitation of Olympias tailings pond

n the same way that it had a hugely symbolic meaning to ancient Egyptian culture, gold was just as central to ancient Greeks, in this case as a financial commodity. In fact it was as early as 550 BC that the Greeks had begun mining for gold across the Mediterranean and into Middle Eastern territory. By 325 BC, the Greeks had successfully mined across an area spanning from Gibraltar to Asia Minor and Egypt.

While not quite at its pre-Christianity levels, gold mining has certainly gained some serious momentum since Greece began a fasttrack approvals programme several years ago.

One of the companies leading the gold inflow is today Eldorado Gold.

A Vancouver-based, mid-tier producer with operations in Asia, South America and Europe, Eldorado Gold was founded in the early 1990s and boasts seven operating mines, as well as a pipeline of projects in different stages of construction and development, and an extensive exploration programme.

“Eldorado Gold has been present in Greece since 2008, when we acquired the Perama Hill Gold Project in Thrace, a project that is now in its final stages of permitting,” explains Eduardo Moura, vice-president and general manager for Greece. “In February 2012, we completed the acquisition of the Kassandra Mines from European Goldfields, which included the Stratoni Mine, the Olympias Mine and the Skouries Project, and we now plan to invest approximately $1 billion over the next five years in Greece.”

Northern Greece is an area of particular interest for Eldorado Gold, with its

be mining | 185

ANDRIOPOULOI BROS S.A. Since 1989, ADM is one of the largest Electrical Engineering and Panel Manufacturing firms in South-East Europe. We specialize in the design, construction, installation, commissioning and maintenance of integrated power, control and automation systems.

Certified by EN ISO 9001/2000 we manufacture a range of fully certified M.V. Switchboards, PCC/MCC & Main LV Switchboards, Indoor & Outdoor Distribution Boards, Pillars, Automation & Control Panels and MV/LV substations, following all respective standards and based on our experience as Original Equipment Manufacturers.

Our solutions find a wide array of applications in Industry, Power Generation, Renewable Energy, Buildings & Infrastructure.

Our products and services are made available throughout South East Europe, the Middle East and North Africa having implemented a very strong portfolio of projects including Power Generation Plants, Cement, Oil & Mining Industries, Airports, Railways & Roads for both Public and Private sector.

Having a highly educated and motivated staff, we deal with every new project as a new creative challenge, answering back with a mix of knowledge and flexibility.

Based on our experience we offer project and system management services throughout the lifecycle of a project: from concept/systems design to commissioning and long-term maintenance.

Looking to future strong partnerships we invest on innovation and expertise since we fill that our duty is continuous improvement.

BE WEEKLY |1 186 | be mining

110, Dekelias Ave., Acharnes, Athens - Greece,.

GR - 13 178 Tel.: +30 210 2461616 +30 210 2461673 Fax: +30 210 2423560 Email: info@adm.net.gr. www.adm.net.gr

FREDERIKOS S.A is an engineering firm located in Kavala, North Greece.

FREDERIKOS S.A premises, covering an area of 6000 sq. meters, have the capability to produce high quality castings and demanding machine works. Field of expertise includes mining, oil, renewable energy and chemical industries.

T: 0030 2510316793 0030 2510316968 F: 00302510316967 E: info@frederikos.com www.frederikos.com

Q U A L I T Y

Services and products include: n turn key electromechanical projects n casting of various ferrous non-ferrous parts n construction and maintenance of industrial equipment n construction of different types of pumps n construction of crushers

H A S

I T S

O R I G I N

ELDORADO Eldorado GOLD Gold reputation Eldorado Gold for feature beingtext a in culpa qui officia deserunt to go here...Lorem ipsum mollit anim id est laborum. highly prospective region Lorem ipsum dolor sit amet, dolor sit amet, driving the consectetur company’s consectetur adipisicing elit, adipisicing elit, sed do plans to spend around sed do eiusmod tempor eiusmod tempor incididunt $23 million in exploration incididunt ut labore et dolore ut labore et dolore expenditure here inmagna 2013 alone. firstad attracted magna aliqua. Ut enim ad aliqua. What Ut enim minim the company Greece, minim veniam, quis nostrud veniam, quisto nostrud exercitation laboris exercitation ullamco laboris and what itullamco continues to nisi ut aliquip ex ea commodo Exteriornisi photo ut aliquip of Stratoni ex ea flotation commodo plant benefit greatly from, is its consequat.

Duis aute wellirure consequat. Duis aute irure solid infrastructure, educated force, reliable legal is system a caption this a caption dolor in labour reprehenderit in This dolormillion in reprehenderit in in isexcess of eight ounces of gold and consolidated democratic voluptate velit esse cillum institutions. voluptate velit esse cillum in Greece,” Moura continues, “as well as “We eu have proven andpariatur. probableExcepteur reserves significant dolore fugiat nulla dolore eu fugiat nullaof pariatur.

Excepteur amounts copper, lead, zinc sint occaecat cupidatat non proident, sunt sint occaecat cupidatat non proident, sunt

FREDERIKOS SA FREDERIKOS SA, was established in 1972 .

Today it is a modern unit able to provide high quality services by investing in cutting edge technologies and by having a comprehensive selection of equipment.

The company is divided in two divisions; the machine shop and the foundry.

The combination of the foundry and the machine shop gives the flexibility to fulfil difficult tasks and bring innovative ideas to life.

FREDERIKOS SA philosophy is simple; “Treat all our clients with the dignity and courtesy they expect, from small business to the largest industry”. This includes the exemplary customer service, combining lasting and effective support at all levels.

FREDERIKOS SA has managed through the years, to build strong ties with partners like HELLAS GOLD (member of the EL DORADO GOLD family), AKTOR (the leading

construction company in Greece), ROKAS renewable ( a subsidiary company of IBERDOLA, Spain’s largest energy group), KAVALA OIL (the only oil extraction company in Greece) EL.FE(one of the largest fertilizer industries) and a long list of large and small industries throughout the Greek territory and abroad.

FREDERIKOS SA is at the top of the industry and undertakes large projects. Quality is a prime importance in the engineering industry in general. FREDERIKOS S.A. highlights the quality control system by highly qualified staff performing inspections, disciplined quality control of all equipment, continuous training of staff, and the availability to quality control by our customers.

E. info@frederikos.com www.frederikos.com

beBEmining WEEKLY| 189 |2

info@aktor.gr | www.aktor.gr

Presence in 12 countries 60 years of expertise Wide areas of expertise -Buildings -Infrastructure -Industrial -Waste Water Treatment -Mining/Quarrying -Facility Management -Project Management 859 ml turnover 2011 2.8 bn total construction backlog (May 2012) 9,000 collaborators in Greece and abroad Rank 103 (ELLAKTOR Group) in the TOP 225 Global Contractors list by ENR (August 2011) Rank 138 (ELLAKTOR Group) in the TOP 225 International Contractors list by ENR (August 2011) Various awards for sustainable construction & development from 2003-2010

EL DORADO GOLD Eldorado Gold

AKTOR The leading position held by AKTOR in the construction sector and particularly in the construction of underground projects (road tunnels, etc.) along with the continuous growing demand for minerals and ores from countries like China, India, Russia led AKTOR to also become involved in the mining sector.

Today it possesses experience, executives and technicians, together with equipment customized for the above activities.

• the renovation of the Olympias mine by widening and deepening the galleries and permanent re-supporting them up.

• the improvement of the existing concentration plant at Olympias in order to make use of the existing marshes.

• a concentration plant for the ‘Skouries’ porphyry deposit and lastly • two earthen dams near the Madem-Lakko mine.

AKTOR S.A., shareholder in Hellas Gold S.A. operates on the polymetallic deposits at “Cassandra Mines” (Cu, Au, Pb, Zn, Ag) and the total reserves per ore amount to: • Stratoni, total reserves 10Moz silver, 0.3Mt lead and zinc • Skouries, total reserves 3.59Moz gold and 0.736Mt copper • Olympias, total reserves 4.06Moz gold, 58.8Moz silver, 0.6Mt lead and 0.8Mt zinc.

As a contractor, it is constructing: • a tunnel connecting the mines Madem-Lakko (Pb, Zn, Ag) & Olympias (Pb, Zn, Ag) ~ 10km in length, with a cross-section of 42 m2.

• a tunnel for mucking raw from the Olympias mine to the Olympias enrichment plant, 1 km long with a cross-section of 27 m2.

• a hydraulic stream diversion tunnel near the Madem-Lakko mine, 1 km long with a crosssection of 16 m2.

• a vertical access shaft to the ‘Skouries’ porphyry deposit (Cu, Au), 700 m in length and 6 meters in diameter.

• a helical access ramp to the ‘Skouries’ porphyry deposit (Cu, Au), 5.5 km in length and with a cross-section of 35 m2.

The special equipment employed for the execution of these projects include Road Header, Jumbo, Tunnel Loader & Dumpers, etc.

AKTOR S.A., with its subsidiary HELLENIC QUARRIES S.A., has also undertaken to engineer the exploitation, extraction, processing and sale of powdered calcium carbonate (industrial mineral) a suitable raw material for use as a filler in the paint, fertilizer, animal fodder and pharmaceutical industries in a site in North of Greece. The annual production amounts to about 100,000 tons of top-quality calcium carbonate, of high purity and whiteness.

The same subsidiary, as a nominated subcontractor of the company Silver and Baryte Ore Mining S.A. (S&B), is constructing two galleries accessing bauxite deposits, gallery S580 with a length of 1,550 m and gallery S627, 1,350 m in length, each with a cross-section of 25m2, filling opened stop bauxite mines with waste rock excavated when building the galleries. It has also undertaken to extract 170,000 tons of bauxite. www.aktor.gr

WEEKLY| |1912 beBEmining

Q U A L I T Y

A N D

R E L I A B I L I T Y

CRE ATIVE YE AR S FROM 198 4 MAN-AiR was founded in February 1984, initially to supply industry with compressed-air equipment.

Very soon the company’s activities expanded in the area of drilling rigs for civil works and tunnelling, mines and quarries, where it acquired the biggest market share with the Finnish company TAMROCK. To maintain its position in the Greek market, and in order to confront the vast changes in the market requirements, Man-AiR invests in human resources.

Thus, the company’s Sales Department comprises of highly experienced Mechanical and Mining Engineers, who with continuous training, locally and abroad, as well as with visits to all the major international fairs, are informed about all the improvements in the product range, in order to help the customer choose the right equipment according to his needs.

The company’s Spare Parts Department is on-line with the suppliers’s spare parts departments, thus making sure of the availability of spare parts, as well as the ordering progress.

Finally, the Technical support team is equipped with the most suitable and contemporary tools, and combined with perfectly trained personnel is in position to face any problem, either locally in our workshop or with our mobile workshops and through a network of associates.

Man-Air through its many-year experience can offer solutions and equipment covering most of the needs of the construction and mining market, by being the sole distributor of the following companies:

16, 46th Str. & 7th Str. 133 41 ATTICA Industrial Zone, ANO LIOSIA GREECE Tel.: +30 210 5150415, Fax: +30 210 5151832 | E-mail: manair3@otenet.gr | www.man-air.gr

EL DORADO GOLD Eldorado Gold El silver.

Dorado feature Lorem ipsum dolor sit amet, and In Gold Skouries, for text to go here...Lorem ipsum consectetur adipisicing elit, example, we have a copperdolorporphyry sit amet, deposit consectetur sed do eiusmod tempor gold with incididunt ut labore et dolore adipisicing elit, sed do 3.6 million ounces of gold eiusmod tempor incididunt ut magna aliqua. Ut enim ad and 738,000 tonnes of copper labore et dolore magna aliqua. minim veniam, quis nostrud in proven and probable Ut enim ad minim veniam, exercitation ullamco laboris reserves.

This project will nisi ut aliquip ex ea commodo quisfully nostrud exercitation be operational in 2015 ullamco consequat. Duis aute irure and we laboris expectnisi it ut to aliquip be in ex ea commodo consequat. dolor in reprehenderit in Olympias flotation plant: employees at work operation for more than 25 Duis in aute irure dolor in voluptate velit esse cillum years total.�

This Eldorado is a caption this is a caption reprehenderit in voluptate dolore eu fugiat Elsewhere within the country, proven and probable reserves.

Olympiasnulla also velit esse cillum dolore euis a replacement contains 270,000 pariatur. sint Gold’s ore body in Olympias ounces ofExcepteur gold in tailings fugiat nulla pariatur.

Excepteur sint occaecat non proident, in mixed sulphide body with 3.8 million ounces occaecat placed by cupidatat former operators.

These sunt tailings cupidatat non proident, in culpa qui culpa qui officia deseruntinmollit anim id of gold, 57.7 million ouncessunt of silver, 599,000 are being re-processed the recently officia deserunt mollit anim idtonnes est laborum. laborum.flotation Lorem plant ipsumofdolor sit amet, tonnes of lead, and 796,000 zinc in est refurbished Olympias.

The

MAN-AIR S.A. Man-Air S.A. is activated in supplying machinery for surface and underground works; since 1985 as the exclusive distributor of SANDVIK MINING AND CONSTRUCTION. Man-Air S.A. has the biggest market share in Greece.

Man-Air S.A. has a successful presence since 1996 in the Gold mine of Chalkidiki when Man Air delivered to TVX, 7 Underground drilling jumbos which operate until today in the toughest environment and feature market-leading productivity rates and excellent reliability.

Man-Air S.A. with the unbeaten customer support, ensuring that you get the right parts on time and providing experienced field engineers, manage to continue the collaboration with the new owner

Hellas Gold Sa since 2004.

New robust and reliable machinery, coming from the product range of Sandvik, join the mine in 2012. This new group consists of 2 underground drilling jumbos, 2 Loaders, 2 underground trucks, a rock support drill rig which is capable to do all the needed type of bolts and a sturdy universal concrete spraying machine Sika-PM407.

All this equipment with the after-market support systems of Man-Air S.A. will give added customer value.

With decades of experience and in-depth industry knowledge, Man-Air S.A. aims to fulfill and satisfy the challenges of the future.

E. manair3@otenet.gr www.man-air.gr

WEEKLY| 193 |2 beBEmining

Since 50 Years side by side with leading Technology Normet cares for their clients

UTILIFT MF 540

CHARMEC MF 605 DA

www.coray.com

VARIOMEC MF 905 B

TECHNOCHIMIKI Ltd • 3, Heyden st. • 10434, Athens / Greece • Phone +30 2108835838 • Fax +30 2108837405 • e-mail: technoch@otenet.gr

Eldorado Gold

Olympias mine: development and supporting work

Stratoni Mine meanwhile contains ten million develop our assets, increase production levels ounces of silver, 110,000 tonnes of lead and and identify new opportunities. In doing 151,000 tonnes of zinc in reserves. Finally, so, we create and deliver value for all our stakeholders.” the ore body in Perama hill contains 975,000 ounces of The aforementioned $1 gold in reserves. billion investment that the “We have always been company plans to make focused on building a over the next five years profitable business with will be spent primarily healthy margins by using on the development and a responsible approach construction of Eldorado to growth,” Moura states.

Gold’s three main projects Amount of capital “What we do is combine in the country; Skouries, the company plans to our technical expertise with Olympias and Perama Hill, invest in Greece over next five years capital discipline to grow as well being used to cover exploration expenditures so our resources and reserves,

$1

Billion

be mining | 195

GC ISTRIA: Engineering Consultants and Drilling Contractors

• Providing its services worldwide • Keeping and improving its high standards of performance • Continuously extending its range of services • Supporting and improving the training and working conditions for its employees and collaborators 5 Hatziyianni Mexi Str, P.C. 115 28, Athens, GR | t:. +30 210 72 18 323 / 210 72 18 977 f: +30 210 72 46 597 | e-mail: info@istria.gr | www.istria.gr

NEW PRECIOUS RESOURCE DISCOVERED

Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

Eldorado Gold as to discover new deposits.

Istria General Consulting “When all of our mines We specialise in drilling investigations for mining, here are in full production,” geotechnical and geothermal purposes. Such investigations Moura ent huses, “ we can potentially reach depths of up to 800m, with anticipate that we will vertical and inclined drillings through complex geological have become the largest formations. Engineering designs for infrastructure, energy, gold producer in Europe. mining and building projects with particular emphasis on underground geotechnical and structural designs and At current metal prices our mining resource estimation. mines will generate export www.istria.gr revenues of approximately $1 billion per year to Greece, including sales of copper, lead, zinc and silver. Furthermore, we estimate that by this time we will have generated some 5,000 direct and indirect jobs locally.

We have already invested close to $100 million in Greece since the beginning of 2012 and in doing so we have tripled our direct labour force in the country from 400 to 1,200 people.”

In addition to the employment opportunities it creates, the company also continues to set aside capital that is used to support the local communities that exist in close proximity to its operations. This includes approximately €3 million that is provided annually to the Aristotle Municipality in Halkidiki, with plans to provide another €1 million per year in Alexandropoulos, Olympias mine: underground development and supporting work T h race, in t he not-too - dista nt

“When all of our mines here are in full production,we anticipate that we will have become the largest gold producer in Europe” be mining | 197

“We continue to spare no effort to earn the trust of local communities by demonstrating that we are a responsible mining company� future. The money itself is intended mainly for community infrastructure projects as well to provide support for numerous local cultural and athletic associations.

198 | be mining

Looking to the future, Eldorado Gold as a group has ambitious growth targets, aiming to produce 1.7 million ounces of gold by 2016. This figure represents more than double its total gold production of 660,000

Eldorado Gold

Indoor shooting of Olympias mine

ounces for 2012 and equates to 160 percent growth over a five year period. Needless to say then that its operations in Greece will play a critical role in delivering this.

“As has been the case since we first entered the market,” Moura conclude, “we continue to spare no effort to earn the trust of local communities, particularly in Halkidiki and Thrace, by demonstrating in our day to day activities that we are a responsible mining company and that we keep our promises. Eldorado Gold has an industr y reputation which we

value highly and aspire to preserve in our worldwide operations. I strongly believe that responsible mining can make an important contribution to the economic recovery of Greece and that the best way for us to remain successful in this part of the world or elsewhere is to walk the talk.”

For more information about Eldorado Gold visit: www.eldoradogold.com

be mining | 199

company in brief Eldorado Gold is a low-cost gold producer with operations in Asia, Europe and South America.

We have seven operating mines and a pipeline of projects in different stages of construction and development. We also operate an extensive exploration program.

Eldorado is focused on building a solid, successful, mid-tier gold company. Our vision is to create a long-term, profitable business with healthy margins using a disciplined and responsible approach to growth. We combine

our technical expertise with capital discipline to grow our resources and reserves, develop our assets, increase production levels and identify new opportunities. In doing this, we create and deliver value for all our stakeholders.

MANAGEMENT AND DIRECTORS Norman S. Pitcher

Robert R. Gilmore CPA

President

Non-Executive Independent Chairman of the Board

Paul N. Wright Chief Executive Officer, Director

Fabiana Chubbs Chief Financial Officer

Paul J. Skayman Chief Operating Officer

Dawn L. Moss Executive Vice President Administration, Corporate Secretary

200 | be mining

K. Ross Cory Independent Director

Geoffrey Arthur Handley Independent Director

Wayne D. Lenton Independent Director

Michael Allan Price Independent Director

eldorado gold stock watch

Office Head Office 1188 - 550 Burrard Street Bentall 5, Vancouver, BC Canada V6C 2B5 Tel: +1-604-6874018 Fax: +1-604-6874026 Email: info@eldoradogold.com

Exchange TSE

Shares 717.58M

Symbol ELD

Market Cap. 4,937.74M

Currency CAD

Div/yield 0.07/2.03

www.eldoradogold.com

products • Gold • Zinc • Lead

• Silver • Iron ore

Investment highlights

operating territories

Over the past five years we have doubled our production, materially increased our resources and reserves and increased our share price on an annualized basis by 22%. We have maintained cash operating costs between US$200 and $500/oz.

• Turkey • China • Greece

We aim to continue our growth over the next four years as we more than double our current annual gold production. In 2016, we expect to produce 1.5 million ounces of gold. That equates to 125% growth over five years. In the same period, we anticipate our cash operating costs will decrease. By 2016, we see our cash costs (net of by-products) declining to US $300-$350/oz.

• Brazil • Romania

Key stats and ratios

Q1 (Mar ‘13) 2012 Net profit margin -13.01% 27.72% Operating margin 40.55% 39.58% EBITD margin - 51.24% Return on average assets -2.22% 5.35% Return on average equity -3.10% 6.65%

Financial information from Google Finance and Thomson Reuters

be mining | 201

Eurostar Diamond Traders

Polished perfection Chief Executive Officer of the Eurostar Group, Kaushik Mehta, discusses how the company is geared up to meet both the challenges of today and the future

written by: Will Daynes research by: Will Kirby

be mining | 203

One of the polishing rooms at Eurostar, Botswana

Eurostar Diamond Traders

I

t was in 1972 that Dame Shirley Bassey released the iconic song Diamonds Are Forever. Immortalised as the theme tune to one of Sean Connery’s greatest James Bond adventures the song spoke of how diamonds will remain long after a person’s love has gone. The truth is that not only will diamonds outlive many generations to come, the creation of natural diamonds pre-dates life on earth itself.

Formed at high temperature and pressure at depths of between 140 and 190 kilometres inside the Earth’s mantle, the growth of natural diamonds occurs over periods of 1 billion to 3.3 billion years. Brought close to the Earth’s surface naturally through deep volcanic eruptions by a magma that cools into igneous rocks, diamonds can also be produced synthetically or through chemical vapour deposition (CV D).

Renowned for its superlative physical qualities, diamond possesses the highest hardness and thermal conductivity of any bulk material known to man.

Today it is thought that approximately 26,000 kilograms of diamonds are mined annually, equating to a total value of almost $9 billion. At the same time, around 100,000 kilograms of diamond is synthesised, with roughly 49 percent of diamonds originating from Central and Southern Africa.

Despite the timeless nature of diamonds, the diamond industry has not avoided the economic turbulence that has plighted many a business sector over the years. Ironically enough, it was during the 1970s that the seeds were sown for what has since been referred to as the great diamond crash of 1980.

be mining | 205

$9 Billion The estimated value of diamonds mined annually

Rough stone

206 | be mining

Having been founded only two years prior to this event, perhaps it wouldn’t have been a surprise if Eurostar Diamond Traders had become a short-lived entity. As it happens, the events of 1980 actually helped shape the company into what it remains 35 years on.

“Having weathered the near collapse of the diamond business in 1980,” explains Kaushik Mehta, Chief Executive Officer of the Eurostar Group, “we saw the fall in the price of diamonds as an opportunity to set about expanding ourselves from our single manufacturing plant in Belgium, focusing on a core business strategy that involves purchasing rough diamonds, cutting and polishing them, and then selling them on through various channels to retailers, wholesalers and prestigious brand names.”

At its heart, diamond cutting is the practice of changing a diamond from a rough stone into a faceted gem through a combination of specialised knowledge, tools, equipment and techniques. The activity of diamond cutting, as well as overall processing, is typically concentrated in a select few cities around the world, with 80 percent of all rough diamonds being handled in the Antwerp diamond district.

“While our activities in Belgium remain absolutely crucial to our operations,” Mehta continues, “we have developed massively as a business since the early 1980s, evolving into one of the leading diamond manufacturers on

Eurostar Diamond Traders

Analyzing rough stone - mapping inclusions

the market.” This evolution saw Eurostar become a Sightholder of the DTC, the sales and marketing arm of the De Beers Group, in 1986, before going on to found Eurostar Belgium Inc. in New York in 1992.

Two years later the company achieved a major milestone in its development with the establishing of its main diamond cutting and polishing centre in China, where it now operates from three locations. In 2001, Eurostar completed the acquisition of a sizeable stake in The Hearts on Fire Company,

making it the leading producer of ideal cut Hearts & Arrows diamonds in the world. The first decade of the new millennium bought with it yet more success, with Eurostar Diamond Traders Shanghai being founded in 2002 and Eurostar being awarded a second DTC Sight in Botswana. More recently, in 2010, the group has established both Eurostar Diamond Traders Hong Kong Ltd. and Eurostar Diamonds India Pvt Ltd, the latter of which is run by Mehta’s brother Paresh.

Following the successful establishment of

“We have developed massively as a business since the early 1980s, evolving into one of the leading diamond manufacturers on the market” be mining | 207

“Internally, the group has also made great strides in its work to attract, and subsequently retain, the most talented individuals possible to its workforce�

Analysing polished stone

208 | be mining

Eurostar Diamond Traders infrastructure within China the company has begun to turn its attentions to other targets, the next being Cambodia. “As a result of the length of time that we have existed as a leading player in the market,” Mehta states, “we have been able to not only create a very strong distribution network covering various market segments, but also a vast portfolio of notable customers, and we want to build on this further in the years to come.”

Eurostar Diamond Traders’ focus on the future means that it relentlessly pursues innovation, out-investing the industry in developing the latest manufacturing processes and tools. “We are never satisfied with what is seen as the industry standard,” Mehta enthuses, “rather, we stretch ourselves beyond what others see as possible. Thanks to the expertise of our in-house research and development team we are always able to stay a few steps ahead of the competition.”

As is the case with any respected player within the diamond industry, sustainability and corporate social responsibility are massive themes that drive many of the decisions and activities that Eurostar Diamond Traders undertakes. In addition to being 100 percent Kimberly Process compliant, the company participates in a number of community schemes in all of its major locations, from

Kaushik Mehta, CEO

building schools in China to running an orphanage in Botswana. In 2011, the Eurostar group achieved certification to say that it meet the ethical, human rights, social and environmental standards as established by the Responsible Jewellery Council’s Member Certification System.

Internally, the group has also made great strides in its work to attract, and subsequently retain, the most talented individuals possible to its workforce. This all begins with the training that it provides at its factories. “Our in-house schools,” Mehta highlights, “feature intensive programmes that train our workers to expertly polish diamonds. After completing a year-long course, these individuals will have earned the qualifications necessary to move into full time positions in our factories.”

be mining | 209

Sieving polished diamonds

Eurostar Diamond Traders Even with a trained workforce in place one of the major challenges the company faces today, particularly in China, is being able to retain these employees for a substantial period of time. “As recently as two-to-three years ago,” Mehta reveals, “we were experiencing a situation where up to five percent of our Chinese workforce were moving on to other employment on a monthly basis. In the time since we have launched a series of incentivising initiatives to combat this, going so far as to providing accommodation for our workers. What this has helped us do is reduce the percentage of outgoing employees down to as low as two percent, a figure that we hope to improve going forward.”

As Mehta goes on to conclude, this is just one of the challenges that Eurostar Diamond Traders will have to face in the immediate future as the industry battles with the effects of the increasing disparity between supply and demand. “The fact is that while no new diamond mines have opened in the last decade, increased productivity and production has resulted in a shortage of rough diamonds. This is a serious concern for the market and one that will not be solved by a quick-fix solution. That makes it all the more imperative that in the years to come we must continue to do what we do best as a business in order to shine brighter than our competitors.”

For more information about Eurostar Diamond Traders visit: www.eurostardiamond.com

be mining | 211

company in brief Our mission is to guarantee you the very best diamonds. As one of the world’s leading diamond wholesalers and diamond manufacturers, we aim to deliver the highest possible value to all our stakeholders: from customers to suppliers to employees, wherever they may be in the world.

Our goal is to continue to shape and lead the global diamond market. By striving to outperform both ourselves and our competitors every day.

By doing everything we do with the same passion and enthusiasm. And by setting the highest standards based on our core values: Excellence

- Innovation - Client Focus - True Purity. It is these values that enable us to achieve our mission time and time again, to build long-term relationships of trust and to drive both our business and yours beyond the limits.

people and partners Diamond engineers When it comes to blueprinting larger gemstones, our dedicated team of diamond engineers analyses how to achieve maximum value from every rough diamond that goes into production.

Gemmologists Our gemmologists use the most sophisticated testing equipment such as a refractometer, spectroscope and microscope to identify and analyse all kinds of gemstones. They evaluate precious stones with confidence and prepare special identification and appraisal reports.

Expert research and development Our own research and development department continues the never-ending search for new

212 | be mining

methods and new possibilities, experimenting with new ways to captivate the imagination with original shapes and techniques.

Our partners Our close relationship and longstanding partnerships with key mining companies enables us to source and distribute both volume and variety of high-quality, natural and untreated diamonds at the most competitive prices.

Our suppliers DTC is the rough diamond sales and distribution arm of the De Beers Family of Companies, the number one diamond mining and trading company.

The DTC sorts, values and sells approximately 75% of the world’s rough diamonds by value.

Eurostar Diamond Traders Corporate Responsibility

Office

As a responsible Corporate citizen we support social wellbeing, industry beneficiation and other activities. Eurostar Diamond upholds the highest global standards for workplace and environmental ethics.

Integrity is sacred to us. We promise you total integrity from sourcing to delivery. Our business is transparent and pure, we follow a respectable list of grading and certification commitments reflecting a highly professional and ethical working environment.

As a DTC Sightholder, Eurostar Diamond is subjected to Best Practice Principles (BPP) ensuring that the organisation is run in the most ethical and professional manner. This means that every Eurostar diamond is guaranteed 100% Kimberly Process Compliant.

Eurostar Diamond is a member of the Council for Responsible Jewellery Practices (CRJP), another sign of our commitment to promoting and implementing ethically, socially and environmentally responsible practices throughout the diamond and jewellery supply chain.

Head Office Eurostar Diamond Traders NV Hoveniersstraat 53 box 79 B-2018 Antwerp

• Every diamond undergoes over 32 quality control procedures before it reaches the marketplace.

• Independent certification from GIA, AGL, HRD, and IGI is available for total confidence.

• Eurostar Diamond is certified compliant with the ethical, human rights, social and environmental standards as established by the Responsible Jewellery Council’s Member Certification System.

Tel. +32 (0)3 213 77 77 Fax +32 (0)3 213 77 99 www.eurostardiamond.com

products • Polished diamonds • Precision calibrated diamonds • Hearts & Arrows diamonds

operations • Antwerp • Dubai • Hong Kong • Mumbai • New York • Shanghai • Shenzhen

be mining | 213

foundations of the future

214 | be mining

Base Titanium

General Manager of External Affairs, Joe Schwarz discusses how the work of Base Titanium on the Kwale Project is helping to shape the future prosperity of Kenya

written by: Will Daynes research by: Richard Halfhide

be mining | 215

Power reticulation string 11kv line

Base Titanium

A

s the vast majority of experts, analysts and economic observers will attest, the mining sector offers the African country of Kenya the highest immediate growth potential, with its development expected to contribute significantly to driving economic growth in various industries including energy, construction, transportation and finance.

At the heart of the country’s long-term mining plans is the Kwale Mineral Sands Project. Located 50 kilometres south of the port city of Mombasa, it is a highly competitive project in a sector with a significant forecast supply shortfall widely thought to emerge in the medium term. Indeed it is estimated that the Kwale Project will go on to contribute some $300 million to the government of Kenya in direct tax and royalty payments alone over the 13 year life of the mine.

“The project,” explains Joe Schwarz, General Manager of External Affairs, “was first initiated back in the mid-1990s by the Canadian company Tiomin Resources, which carried out the initial exploration, environmental, re-settlement and feasibility work. After a number of years of moving the project forward, Tiomin suffered a series of setbacks until an acquisition agreement with the publically listed Australian company Base Resources was concluded in July 2010.”

With the deal complete, and with the backing of the Kenyan government, Base Resources registered a wholly-owned Kenyan subsidiary, Base Titanium. It is this local entity in which the Kwale Project assets exist as its flagship development. Following

be mining | 217

a positive update of the feasibility study, and the successful raising of equity and debt financing, the $300 million project was officially launched in late 2011.

Wholly focused on the Kwale Project, Base Resources has evolved massively in a very short period of time, going from a small exploration outfit to a sizeable business with a market capitalisation of over $200 million and a member of the ASX 300.

Construction of the project is now well advanced, with practical completion scheduled for the third quarter of 2013. By the end of the year Base Titanium expects to have commenced shipping of three distinct product streams processed from the mine’s high-value, heavy-mineral assemblage. Going forward, it will produce 330,000 tonnes of ilmenite, 80,000 tonnes of rutile and 30,000 tonnes of zircon annually over a 13-year period.

Base Titanium aims to become a truly Kenyan mining company and one that brings both economic and social benefits to the communities in which it operates. “Our focus,” Schwarz enthuses, “is on delivering sustainable, long-term community investment.

We are developing further programmes for the future and the pay back is that we gain the co-operation and support of a contented and uplifted community.”

As the operator of the first large-scale mining project to be developed within Kenya, Base Titanium has the responsibility of setting the benchmark for future developers to meet. The company is very much viewed as a flagship organisation to attract further investment into an industry sector that, despite remaining neglected and dormant for a considerable period of time, is now experiencing a ground swell of

“Base Resources aims to be the first thought of company when considering truly successful resource development in Africa” 218 | be mining

Base Titanium

Power supply - mine site substation installation

interest from various neighbouring communities.” exploration companies from Base Titanium operates around the world. a recruitment system based on registering job seekers To date, the Kwale Project into a database that captures has helped create significant Estimated life opportunities for local information on domicile, span of the mine economic development, one skills and other relevant of which being a focused local factors. People are then employment programme. selected for employment on “This part of Kenya,” Schwarz highlights, “is a best fit basis, while giving first priority somewhat economically depressed compared to those from affected and immediately to other regions of the country and t neighbouring communities. herefore employment and economic “In addition to the aforementioned efforts opportunities are sensitive and emotive we have made,” Schwarz says, “we are also issues. Through formalised agreements with committed to transferring skills to locals in the government and local communities, order to equip them for employment in the we are committed to maximising local wider mining and related industries. Among recruitment from among project affected and the ways we are trying to do this is by providing

13 YEARS

be mining | 219

formalised training, apprenticeships and mentoring programmes for young people who lack the necessary hands-on experience.”

Health and safety of its employees and surrounding communities is something that is equally important to Base Titanium. “We have now worked over two million man hours since the only lost time injury incurred so far in building the project,” Schwarz adds. “Our lost time injury frequency rate of just over 0.3

220 | be mining

compares very favourably with some of the best operators globally, all the more remarkably in that many employees have never before worked in an industrial environment.”

It is a commonly held view that to this day Kenya remains grossly underexplored. One of the reasons for this is the fact that historically Kenya has seen itself as an agricultural nation first and foremost.

“At present,” Schwarz concludes, “minerals

Base Titanium

Water storage dam - central embankment under construction

and mining contribute only 0.7 percent of Kenya’s GDP and less than two percent towards its total export revenues. It goes without saying therefore that the growth potential here is significant, and this is already proving to be the case. However, what we as a business are doing here today is just the beginning. Base Resources aims to be the first thought of company when considering truly successful resource development in Africa

such that governments and communities will invite us in, employees will seek us out and others will want to emulate us. The Kwale Project represents just the first step towards making that a reality.�

For more information about Base Titanium visit: www.basetitanium.com

be mining | 221

company in brief Base Titanium Limited is a wholly-owned subsidiary of Australian-listed resources company, Base Resources Limited (ASX: BSE).

Base Resources Ltd is engaged in evaluation and development of the Kwale Mineral Sands Project in Kenya. The Company has portfolio of assets in both Africa and Australia. In Kenya, East Africa, the Company is focused on developing the Kwale Mineral Sands Project in Kenya. It also has a portfolio early stage exploration projects in Western Australia’s Mid West region for iron ore, gold, base metals and uranium. Its flagship project Kwale Mineral Sands Project in Kenya is located 10 kilometres inland from the Kenyan coast and 50 kilometres south of Mombasa,

Kenya’s principal port facility. The general stratigraphic sequence of the Kwale deposit is composed of a brown sand at the surface, followed by orange or reddish sand, becoming more beige or pinkish at depth. The base of the deposit is weathered sandstone from the basal formation. White sand and clay are also described at the bottom of several holes. Its Mid west projects include Poona East, Murgoo and Wandarrie Well.

MANAGEMENT AND DIRECTORS Prof. Joseph Kamuya Maitha

Colin Forbes

Chairman

General Manager – Environment & Community Affairs

Andrew King Director

Tim Carstens Director

Colin Bwye Director

Joe Schwarz General Manager – External Affairs and Development

222 | be mining

Denham Vickers General Manager – Operations

Rob WIlliams General Manager - Construction

Stephen Hay General Manager - Marketing

Kevin Balloch Chief Financial Officer

base titanium stock watch

Office Base Titanium Limited Power Factor Complex Diani Beach Road Ukunda Tel: +254 (0)732 900 888 / +254 (0)774 317 506 Fax: +254 (0)40 320 2253 Email: info@basetitanium.com

Exchange CVE

Shares 39.76M

Symbol ATY

Market Cap. 23.46M

Currency CAD

Div/yield -

www.basetitanium.com

products • Ilmenite • Rutile • Zircon

Investment highlights Through share issues announced on 1 August 2011, Base Resources successfully raised AUD152 million in equity funding.

A detailed capital cost review completed in September 2012 resulted in a revised estimate of USD275 million plus additional contingencies of USD23 million. This total project forecast of US$298 million represents a 14% increase over the original budget.

Consequently, Base Resources launched an offer of new fully paid ordinary shares to raise approximately AUD40 million. Successful completion of the placement was announced on 8 October 2012.

operating territories • Kenya

Key stats and ratios

Q4 (Dec ‘12) Net profit margin - Operating margin - EBITD margin - Return on average assets -2.12% Return on average equity -2.55%

2012 5.45% 5.58% 6.17% 0.33% 0.36%

Financial information from Google Finance and Thomson Reuters

be mining | 223

Ac

224 | be mining

Allana Potash

class apart Senior vice president of corporate development, Richard Kelertas, discusses the results of Allana Potash’s recent feasibility study on its Danakhil Potash Project in Ethiopia and how the company plans to build on this going forward

written by: Will Daynes research by: Marcus Lewis

be mining | 225

Meridian drilling operations with CS14 drill rig

Allana Potash

T

he first several months of 2012 were optimistic times for the potash industry, with a recent acceleration in world demand for the product showing no initial signs of wavering. What we now know is that a number of combining factors in the latter half of 2012 would conspire to negatively impact upon the potash market.

“From an external perspective,” explains senior vice president of corporate development, Richard Kelertas, “I believe the biggest contributing factors to the decline in demand for potash were a series of environmental issues caused by both severe drought and major flooding disasters across the planet. Around the same time, India, traditionally a major potash buyer, decided to scale back its buying commitments in the aftermath of the government reducing various farming subsidies.”

The reduction of these subsidies meant that said farmers began turning to urea and phosphate fertilisers as an alternative to potash, which is misplaced because there are no substitutes for this critical nutrient.

Given this tumultuous backdrop, it comes as little surprise that by the turn of the year the market valuations for the vast majority of junior, and even some senior potash producers had fallen considerably.

Fortunately, the first weeks of 2013 saw the potash industry welcome several positive developments, one of which was the release of the results from Allana Potash’s feasibility study from its flagship Danakhil Potash Project, in the first week of February. This study was prepared by

be mining | 227

Highland canyon trek in search of freshwater sources

228 | be mining

Ercosplan Ingenieurgesellschaft Geotechnik und Bergbau (ERCOSPLAN). The technical report, prepared in accordance with National Instrument 43-101 with respect to the feasibility study and the mineral resource and reserve estimates forming the basis of the report is available under Allana Potash Corp’s profile on SEDAR, confirms the project as being one of the few economically viable greenfield potash developments in the world.

The feasibility study and the mineral resource and reserve estimates were completed

by ERCOSPLAN under the supervision of Dr. Henry Rauche, PhD, EurGeol, Managing Director, CEO ERCOSPLAN and Dr. Sebastiaan van der Klauw, Ph.D., EurGeol, Consulting Geologist, ERCOSPLAN who are both independent Qualified Persons for the purposes of National Instrument 43-101.

The feasibility study itself was based on commercial operations that produce one million tonnes per year of a standard grade muriate of potash, or MOP, product over an initial estimated operating life of approximately 25 years from sylvinite reserves at Allana’s Danakhil Project. The study yielded, on an unlevered basis, an after-tax Internal Rate of Return (IRR) of 33 percent and an after-tax net present value (NPV) of $ 1.32 billion based on a ten percent discount rate.

The feasibility estimates include all infrastructure required to operate a potash solution mine and bring the product to market. This includes cavern and wellfield installation, a three stage processing plant, product storage facilities, load out, trucking

Allana Potash

Production water well wellhead assembly

fleet and the necessary port storage facilities.

Even with current potash market realities driving the lower potash price forecast of $430 per tonne used in the study, the favourable total production CAPEX of about $579 million and port and transport CAPEX of $63 million make this project one of the lowest cost and potentially highest return greenfield potash projects worldwide. Similarly, the very competitive production OPEX at $69.25 per

tonne, within a total, loaded-on-ship, OPEX of $98.75 per tonne FOB, is among one of the lowest greenfield potash projects currently under development.

ERCOSPLAN modelled the production of one million tonnes of MOP from just the sylvinite zone on the project, excluding future potential production from the extensive carnallite and sulphate-based kainite resources. The feasibility study’s extremely

“In the grand scheme of things we are very happy with where we stand today with our business model and strategy” be mining | 229

positive results have understandably given Allana Potash great confidence in advancing its project to development and securing project finance and off take agreements.

Aside from Allana Potash’s own exciting developments, Kelertas is also able to point to several other recent events that are helping bring some much needed confidence back to the sector. “In recent months we have seen

one or two significant contracts being signed by the Chinese, Brazilians and Indians.

Inventory levels of potash have come down somewhat as well and shipment levels are now rising.”

As the industry continues to firm up steadily, Allana Potash finds itself ideally positioned with enough resource on its property to advance from its one

“One of the things that really differentiates us from our competitors is that we have the financial security required to keep the lights on”

NBB water well and solution well drilling with nordmeyer drill rig

230 | be mining

Allana Potash

Solution well leach string

million tonne production target for midto-late 2017, to between two and three million tonnes per year thereafter should conditions remain in its favour. Allana also has the possibility of producing SOP (sulphate of potash), which is a premium priced product compared to NOP (nitrate of potash), the standard fertiliser that most of the world uses. It should be noted however that Allana’s ability to expand production beyond one million tonnes per year has not been the subject of a feasibility study as yet and there is no certainty that the proposed expansion will be economically viable.

“In the grand scheme of things,” Kelertas enthuses, “we are very happy with where

we stand today with our business model and strategy. Indeed, if you look at various other operations across the world, we compare extremely well with any project currently being undertaken, even the numerous established brownfield expansions.”

Nevertheless, it is the company’s aim right now not to get too far ahead of itself. “What we are currently looking at,” Kelertas says, “is making sure we have all of our financing in place before then proceeding to actually getting out into the field and putting that first shovel in the ground.”

When asked what the long term future might hold for the company, it is clear that while it does aim to grow at a comfortable

be mining | 231

Allana Potash

$28 million In capital that Allana Potash retained in the bank as of the end of January 2013 place, Allana Potash does have a number of ideas about where it might be in fiveto-ten years’ time.

“One of the things we must continue to examine on an on-going basis,” Kelertas states, “is the potential for us to upgrade our production levels. Further down the road there is also the possibility that the project could move away from its dependency on diesel and fuel oil, possibly onto solar, geothermal or wind power, making it a totally green operation.”

As of the end of January 2013, it was estimated that the company retained over $28 million in capital in the bank (and no debt), with between $15 million and $20 million predicted to remain when it commences its pre-construction phase. “One of the things that really differentiates us from our competitors is that we have the financial security required to keep the lights on, so to speak,” Kelertas concludes. “This stands us in good stead as we now embark on getting that first shovel in the ground, before commencing with construction, which we plan to have underway by the end of 2013.”

For more information about Allana Potash visit: www.allanapotash.com

be mining | 233

company in brief Allana Potash Corp. (Allana) is a junior mining company with a focus on the acquisition and development of potash assets internationally with its focus on the Danakhil Potash property (the Dallol Potash Project), which is a previously explored potash property in Ethiopia. The Company also has a property in Argentina, which is located near Vale’s Rio Colorado potash solution mining project. The Company’s flagship project is its Ethiopia Potash Project in the Danakhil evaporite basin, which has NI-43-101 compliant Measured + Indicated resources of 673 million tons containing 126 million tons of potassium chloride (KCl) and

additional Inferred Mineral Resources totaling 596 million tons containing 119 million tons of KCl. The Company’s projects include Potash, Argentina Potash project and Ethiopia project. On April 8, 2011, the Company incorporated a wholly owned subsidiary, Allana Potash Afar PLC (Allana Ethiopia). In November 2012, the Company acquired Nova-Ethio Potash Corporation.

MANAGEMENT AND DIRECTORS

Offices

Farhad Abasov

65 Queen Street West Suite 805, P.O. Box 75 Toronto, ON M5H 2M5 Canada

President, Chief Executive Officer, Director

Deborah Battiston Chief Financial Officer

Nejib Abba Biya Senior Vice President Business Development, Ethiopia

Richard Kelertas Senior Vice President Corporate Development

Peter J. MacLean Ph.D.

Tel: (416) 861 5879 Fax: (416) 861 8165 Spinnaker Capital Markets Inc. 10 King St. East, Suite 1250 Toronto, On M5c 1C3 Tel: (416) 962 3300 Fax: (416) 962 3301

Senior Vice President - Exploration

Jack Scott Senior Vice President - Strategic Projects

234 | be mining

www.allanapotash.com

allana potash stock watch

Project highlights

Exchange TSE

Shares 275.99M

Symbol AAA

Market Cap. 118.68M

Currency CAD

Div/yield -

products

• Strategic investment from IFC (International Finance Corporation), the only potash project worldwide with IFC support • Strategic investment from Liberty Metals and Mining, acquired 17 % of Allana in Nov. 2010 • Feasibility Study completed indicating robust project economics, low CAPEX and OPEX among the most competitive in the industry • ESHIA under government review, completion expected in Q1, 2013 • Application for conversion to mining license initiated, license expected in Q2, 2013 • MOP production planned from Sylvinite zone, potential expansion from Carnallite and Kainite zones including SOP production • MOU signed to construct potash terminal in Djibouti • Close Proximity to India, the second largest importer of potash

• Potash

Key stats and ratios operating territories • Argentina • Ethiopia

Q1 (Jan ‘13) 2012 Net profit margin - Operating margin - EBITD margin - Return on average assets -13.01% -5.25% Return on average equity -14.33% -5.39%

Financial information from Google Finance and Thomson Reuters

be mining | 235

Pioneering geophysical services Introducing a quiet revolution in subsurface exploration

T

he Adrok scanner uses electromagnetic technology to help identify and map minerals up to a depth of 4KM. These virtual boreholes are deeper, cleaner, faster, more accurate and more cost effective than traditional seismic methods.

Anytime. Anyplace. Anywhere.

The Adrok scanner is the ultimate

“ We aim to save our clients up to 90% of the cost of physically drilling the ground” 236 | be directory

in portability – readings can be taken on automobiles, planes or boats, on mountains or in desert.

There are no limits.

Our game-changing technology sends a narrow light beam of energy in to the ground using micro and radio waves. We call it Atomic Dielectric Resonance, or ADR. The beam reflected back has a unique code that helps positively identifies and maps any mineral in the ground.

Adrok offers geophysical survey services, usually for a pre-agreed fixedprice during our client’s Exploration and/or Appraisal activities as a complementary survey to Seismic or as a cost-effective alternative. We

Adrok

typically aim to save our clients up to 90% of the cost of physically drilling the ground using a borehole.

We have an excellent team of expert geologists and technicians based at our HQ in Edinburgh, UK analysing the data we obtain in the field and providing customers with measurements of subsurface natural resources, rock types and rock sequences before drilling. We also have bases in Houston, Texas and Perth, Australia to ensure we can service our global clients in the best way possible.

We challenge the old ways.

We believe we are better.

We know we are the future.

Adrok (Head Office) 49-1 West Bowling Green Street Edinburgh EH6 5NX Gordon Stove, MD T +44 131 555 6662 gstove@adrokgroup.com Adrok (North America) 2500 CityWest Blvd, Suite 300 Houston, Texas 77042-3033 Stuart Goldstein, VP for Business Development North America sgoldstein@adrokgroup.com T +1-713-267-2283 | M +1-713-816-1415 www.adrokgroup.com

be directory | 237

PROUDLY SOUTH AFRICAN BULK HANDLING - ARLONA ENGINEERING LEADS THE WAY South African ports are without question the best equipped in Africa. Local harbours utilise the latest technologies and have invested in state of the art equipment to ensure high efficiencies, reduced maintenance requirements and optimum safety

I

is in this highly competitive sector that Arlona Engineering (Pty) Ltd has earned an enviable reputation for innovation, quality and reliability, competing favourably with the world’s leading manufacturers of bulk handling equipment.

Since its inception in Durban in 1966, Arlona Engineering, specialists in fabrication, machining, proofloading and maintenance of bulk handling

“ The company’s success can be attributed to a thorough understanding of this environment known for its arduous operating conditions ” 238 | be directory

and stevedoring equipment, has made a significant contribution to the efficiency of South African ports.

“The company’s success can be attributed to a thorough understanding of this environment - known for its arduous operating conditions – a close working relationship with South Africa’s leading stevedores, as well as a commitment from the Arlona team to design and manufacture equipment to meet the exact needs of every customer,” says Steve Christy, managing director of Arlona Engineering. “The company’s fully computerised fabrication facility is equipped to design and manufacture grabs, hoppers, container spreaders and lifting equipment, as well as a wide range of cargo handling equipment – all to exact specifications.”

The machining division, which

Arlona Engineering offers general engineering services, also manufactures any type or size of twist locks, which are then proofloaded for optimum quality controls. There is also a demand for the fabrication of lifting equipment replacement parts which meet the specifications of original equipment manufacturers.

Arlona’s proofloading division, equipped with a test rig that is certified to proofload up to 100 tons, is geared to test and certify any lifting equipment.

The company, which is accredited by the Department of Labour as a testing station, also offers a load testing service to general industry to ensure that all lifting equipment complies with the Occupational Health and Safety Act requirements. All refurbishing and testing procedures meet international shipping standards, including Bereau Veritas, Lloyds Register, ABS and SABS. An important part of Arlona’s engineering repair operation is a 24 hour maintenance and technical support service to harbour infrastructure and shipping, where a highly experienced team attends to any breakdown on hoppers, grabs and conveyors.

The company also offers the shipping sector a customised maintenance service to ensure optimum condition and efficient operating performance

of cargo handling equipment. A structured maintenance plan enhances operator safety, extends the service life of machinery, minimises downtime and reduces operating costs.

Arlona Engineering utilises the latest technologies, state of the art equipment and quality materials to ensure high efficiencies, reduced maintenance requirements and the optimum safety of its extensive range of bulk handling equipment.

Arlona engineering Corner Clydebank & Hamburg Roads Bayhead, Durban T (+27) 31 205 5991 www.arlona.co.za

be directory | 239

Logistical solutions

Buks Haulage Ltd (BHL) was registered in Zambia in 2004, specialising in the transport of various commodities with value added services and facilities

B

HL is a dynamic entity currently offering total logistical solutions within Zambia and sub-Saharan Africa with the norm of business currently conducted in but not limited to Zambia, DRC and Namibia. We are renowned for our ability to bring Logistical Management Methodologies to greater heights through our experience. Our mission is clear, to provide you with optimal Transport and logistical solutions throughout Zambia and sub-Saharan Africa, by combining loads when

“ We are committed to honouring our agreements with our clients on time and at all times�

240 | be directory

possible, ensuring that the vehicles for your product is optimally utilised and maintaining all stock levels on a weekly, monthly basis.

We are committed to honouring our agreements with our clients on time at all levels and to remain professional at all times. Honesty, transparency and objectivity in dealing with clients are non–negotiables at BHL. We have also developed a powerful contractor base which is both an empowerment initiative and beneficial to your organisation. Each client is treated individually and offered real time management solutions pertinent to their organisation. We give you peace of mind to focus on your core business, while we manage your transport/logistics.

In our experience, sound project management is vital and determines the success of both long and short term

Buks Haulage LTD

projects. Excellent communication is of the essence for effective decision making, delegation of tasks and liaison with all our customers at all levels.

The assigned manager will ensure that the project team develops a sound understanding and appreciation for our client’s business. BHL does not enforce the use of any specific methodology, but prefers to use the methodologies, tools and standards set by mutual agreement with our clients. BHL specializes in formalising international delivery instructions either through import or export key transactions. We invoice via commercial invoicing where applicable, i.e. taxation and payment formalities. We will handle export documents, licenses, permits, export

declarations, inspection certificates, insurance documents and commercial invoices. BHL works in conjunction with the clearing and forwarding agency. Local deliveries in Zambia will be done via mutual agreement.

We are also a subsidiary of a listed company in South Africa (Cargo Carriers).

Buks Haulage Ltd Chilanga Cement road P.O. Box 70700 Ndola Zambia

Â

T +26 (0)212 671404 E buksvr@bhl.co.zm www.bukshaulage.co.zm

be directory | 241

cleaning up the competition Increase your production, the reliability and lifetime of your equipment - and the lifetime of your oil!

8

0 percent of breakdowns in oil systems are related to contamination issues. The key to reliable machinery is maintaining clean oil.

C.C. JENSEN is a global leader with 60 years’ experience in oil filtration.

CJC™ Fine Filters and CJC™ Filter Separators remove particulates, water, and oil degradation products from the lubricant which allows organizations to increase production, improve equipment reliability, extend the machine life and reduce oil consumption.

“ Operating conditions for hydraulics and other fluid systems are especially harsh in mines and quarries” 242 | be directory

Operating conditions for hydraulics and other fluid systems are especially harsh in mines and quarries. Extremely dirty environments, rough terrain and severe weather conditions reduce the lifespan of oil and equipment. Dirt and other particulates that get trapped in machine clearances create abrasive and fatigue wear and lead to premature failure of critical components while water contamination results in pitting, intensifies the oil degradation process and can lead to corrosion.

Traditional filtration systems often struggle to capture the sheer volume of contaminants encountered in mines and quarries without requiring frequent filter and oil changes.

Installation of CJC™ Fine Filters and CJC™ Filter Separators with 3µm absolute filtration is the most effective and economical way to maintain oil in most systems found in mines and quarries. Clean oil

C.C. JENSEN

systems ensure machine uptime.

All CJC™ Filter systems have an unmatched high dirt holding capacity (pounds compared to ounces) and can be adapted for EEX certification.

Units can be sized to accommodate any lubricant viscosity, reservoir volume, power requirements and expected temperature fluctuations for any piece of equipment from the haul truck and loader to the primary crusher, refinery ball mill and beyond.

CJCTM Filters can also purify fuel oils (diesel). Standard sample ports provide easy access for CBM testing while an optional Oil Contamination

Monitor (OCM) can be incorporated for instant monitoring of the oil condition to prevent breakdowns.

To learn more about how CJCTM Filters can improve your equipment reliability or to schedule a plant trial, please contact us direct.

C.C. JENSEN, Inc. Caren Caffrey Account Manager, Mining T (770) 683-6823 E caren@ccjensen.com www.ccjensen.com

be directory | 243

solid engineering Chritech is involved in mechanical, civil and general building engineering works including equipment and labour supplies

O

ut of the pictorial evidence of jobs done or played part in, we seek to introduce ourselves or re-echo our existence in Civil, Mechanical, Electrical Engineering works and Heavy duty equipment hiring both to the mining industry and the general construction setting with the aim of bringing required results to peculiar challenges.

Chritech Engineering Services is

“ Our core competencies cover design and constructional works for processing plants” 244 | be directory

a mining and general engineering contractor registered under the registration of business name act, 1962 having complied with the companies code of Ghana.

Our core competencies cover Design and Constructional works for processing plants, (Personal and Corporate), Tailings Dam, Stockpile Management, Dust Suppression and Long Haulage of Bulk Material, Labour and Material supply.

Based in Bibiani, a mining town in the Western Region of Ghana, we have the ability to arrange and quickly move to site far and near at reasonable notice.

We maintain the highest safety standards in managing our contract to suit the standards set by our clients. We position ourselves “fairly” of the rate range in relation to

Chritech Engineering Services

other competitive service providers within the sub-region, out of which we still meet standards in all aspects of our operations.

We hope you will be able to match our core business and competencies to your “Total Quality Management (TQM) and “Modern Industrial Best Practices.”

Chritech Engineering Services P. O. BOX 153, Bibiani, Western Region, Ghana, West Africa T +233-31 20 99 019 E eschritech@gmail.com

be directory | 245

Minopex.

Your Partner In Profitability Minopex is a leader in contract operations and plant maintenance, adding value to mining operations throughout the world with its unique approach to meeting the individual needs of its clients

B

y contracting your plant operations and maintenance out to Minopex, your mine can focus on its core competencies of bringing mineral wealth to the surface and marketing it.

Minopex carries multisite ISO 9001:2000 certification and operates all its plants to these standards.

From coal, chromite and ferrous metals to diamonds, gold and platinum, Minopex offers a range of services designed to make your mineral processing requirements

“ From coal, chromite and ferrous metals to diamonds, gold and platinum, Minopex offers a range of services” 246 | be directory

more cost-effective while maintaining product quality, plant integrity and safety for all its employees.

Benefits Of Partnering With Minopex • 24/7/365 plant management and operation by skilled professionals • Lower risk • Lower CAPEX and maintenance costs • Improved productivity • Fewer human resource requirements • A choice of flexible contracts including • Fixed cost with operational labour with spares and consumables purchased on a cost plus fee basis • Fixed cost with a variable cost on a rate per plant feed ton • Overall variable rate per feed ton • Overall variable rate per product ton

Minopex

Minopex Capabilities & Services • Process and engineering • Metallurgical quality management, control and analysis • Scheduled and preventive maintenance • Condition monitoring and analysis • Purchasing, stores control and asset management • Cost control • Contract management and administration • Health and safety • Skills development • Environmental management in conformity with the employer’s overall EMPR • Specialist sub-contractor management

• Laboratory operations and maintenance • Waste/discard and tailings dump management • Commissioning services Whatever you mine, leave your processing plant operations and maintenance to Minopex. We are your partner in profitability.

Mineral Operations Executive (Pty) Ltd Ground Floor, Building 7, Pinewood Office Park, 33 Riley Road, Woodmead, 2196 T +27 11 785 7000 www.minopex.co.za

be directory | 247

PRODUCTIVITY FROM MINESIGHT TO YOUR SITE For mine modeling, design, scheduling and operations, companies seeking an integrated software package are increasingly turning to MineSight. At the surface and below it, new MineSight technology is now set to make mining even more productive

M

ineSight is Mintec’s comprehensive mine modeling and mine planning software. It’s built on more than 40 years of developing models and mine plans for projects worldwide. Thanks to Mintec’s network of branch offices on every continent, MineSight is backed by unparalleled service and support.

3D graphics are integral to MineSight and have been continually developed to enhance the software.

At the heart of the software, MineSight 3D provides interactive display and editing of all types of data, including

“ We deliver efficiency and reliability that improves productivity at every stage of your mine’s life” 248 | be directory

drillholes, 3D Block Model, geologic interpretations, topographic contours, and gridded or triangulated surfaces.

It has sophisticated interpretation tools for geologists, full 3D design for underground mine layout, CAD editing of polylines and solids, full 3D solid intersection solid and visualisation of all types of geological and mining data.

Underground, MineSight CAD tools in MS3D can be used to complete the layout of a mine, creating all the required vents, ramps, tunnels and access shafts that sit and interact with the mineral location at appropriate points.

Just in time for its annual MineQuest seminar series, which kicks off in Tucson, Arizona, April 15-19, Mintec is excited to introduce several new products. It’s an appropriate venue because much of the new technology is borne of the client-developer collaboration embodied by MineQuest.

Mintec New releases include: • MineSight Atlas, an activity and resource-based scheduler.

• M ineSight Implicit Modeler, a mathematical tool enabling geologists to build complex shapes directly from drillholes.

• MineSight Performance Manager, the newest, fully-integrated addition to MineSight’s operational product suite, featuring consolidated reporting and true mining analytics.

• MineSight Reserve, which unifies the consolidated power of MineSight’s reserve engines and features a completely integrated reserve calculation and reporting engine.

• MineSight Stope, a complete toolkit for stope design, scheduling and reporting.

• MineSight Surface Resloping Tool, an invaluable addition to MineSight 3D’s Engineering Open Pit CAD, enabling engineers to reduce a shape (i.e. waste dump) to a desired final slope while balancing cut and fill.

• MineSight Sub-Blocking, which extends MineSight model files to convey detailed information along, for example, contact boundaries of geologic zones.

• Model Center, which initializes and manages models directly from MineSight 3D. When it comes to a general mine planning package, MineSight is unique, says Mintec president John Davies.

Combined result - drillholes, mineral solids, block model and the access shafts

“We have the only standard package that can address the full needs from exploration to operation; with software we have authored ourselves - we don’t resell third party scheduling tools,” says Davies.

“This, combined with a stellar support team makes us a very strong player in the GMP space.”

Mintec, Inc. 400-1286 Homer Street Vancouver BC V6B 2Y5 Canada T 604.681.4547 www.minesight.com

be directory | 249

leading car rental

Motor Plan S.A. is the exclusive representative of the multinational franchises National Car Rental and Alamo Rent A Car in the Dominican Republic. It is one of the leading and fastest growing car rental companies in the country and has almost forty years in the car rental market since its opening on December 17, 1973

M

otor Plan has a broad and diverse fleet of rental vehicles. The fleet is formulated according to the guidelines of the brands represented and complying with the most stringent international quality standards. It offers a wide range of vehicles to satisfy each client’s needs with categories ranging from economic to full size cars, pickups, minivans, all terrain and luxury vehicles. The optional services

“ We offer a wide range of vehicles to satisfy each client’s needs” 250 | be directory

include attractive comprehensive protection options for vehicles and users plus accessories such as GPS’s.

Motor Plan transforms vehicle rentals into transportation solutions where corporate clients can reduce significant financial and maintenance costs as well as those associated with human resources. In addition, companies avoid interruptions in their operations due to unforeseen events or repairs, permitting them to address their efforts solely on the company’s business without setbacks.

Motor Plan is responsible for all matters concerning customer fleet maintenance as well as implementing continuous monitoring programs which ensure a sustained process improvement and

Motor Plan S.A.

providing a substitute vehicle every time there is a necessity.

Motor Plan has a team of committed professionals offering personalized and efficient support. It maintains on-going training programs for its personnel at local and international levels.

Day to day Motor Plan keeps innovating to anticipate market tendencies, improving its operations, including new categories of vehicles that satisfy the new needs of the

customers and continue positioning the company as the trend setter of the Dominican car rental market.

Motor Plan S.A. Abraham Lincoln #1081 Edificio Ambar 4to.

Piso.

Santo Domingo, Rep. Dom. T (809) 562-1444, Ext 3002 www.nationalcar.com.doo

be directory | 251

a company with vision

PPE Technologies is an Integrated Electrical Engineering Organisation, focused on supplying high technology systems and solutions to Mining operations, utilities and industry

T

he PPE Technologies management team are very hands on and still practice their engineering skills in a consultative and advisory role to customers, in so doing, the company management remains in touch with core business matters and customers needs.

The company was founded in 1998 and has its head office in Nelspriut, Mpumalanga, South Africa, with a number of satellite and site offices

“ We want to provide world class service, focused on adding value to customer process throughout Africa�

252 | be directory

through South Africa. Although PPE provides general electrical and instrumentation engineering and installation services, the company has a number of speciality services that are not commonly available.

PPE has several business divisions including an Engineering Department for electrical and instrumentation design and commissioning services, an Installation Services Department for onsite maintenance works and installation works, a Project Department for providing turn key project services on an EPC and EMCM basis and an Electrical fitment shop facility providing motor control centres, power distribution boards, PLC and DCS panels and a wide range of electrical and instrumentation solutions. The PPE product sales department develops customer services and provides sales and after sales support. This includes a range

PPE Technologies

of premier electrical and automation products through agency agreements with manufacturers such as ABB, Clearline, Rittal, Beckwith Electric.

The PPE engineering team focuses on more specialised engineering services, intent on adding value to the customer process with dynamic and out of the box thinking on existing or new plants. Our engineers and technicians have vast experience with the design of power plant systems, reticulation networks and plant control systems. Engineering services include power quality assessments, protection systems design and grading, network

studies and modeling. Speciality services include plant earthing studies and measurements, co-generation plant protection and controls, energy efficiency solutions and power quality improvements.

PPE Technologies PPE House Unit A2, Central Park No 12 Suikerriet Street Nelspruit, Mpumalanga 1200, South Africa T (+27) 13 752 3570 www.ppetech.co.za

be directory | 253

computer simulation

Simulation Engineering Technologies (SET) is an independent consulting company and a leader specialising in creating accurate discrete-event computer simulation models of complex systems in mining, logistics, manufacturing and service industries.

O

ur team consist of a number of industrial engineers with a unique blend of experience in conducting simulation studies to provide maximum value to clients.

Using simulation technology has many advantages and has become mandatory for leading companies when performing due diligence studies of a new mine, process design or prior to changing current design parameters. The following are only a few of the advantages of using computer simulation:

“ Using simulation technology has many advantages and has become mandatory” 254 | be directory

• Reduces risk • Provides an insurance policy •E nables managers to make better decisions • Capital avoidance • Captures randomness and variance • Improves profits Computer Simulation Solutions Mining Underground Mining • Rock Handling Systems • Rail & Truck Haulage systems • Mining Methods and Cycles • Mine Development • Personnel and Material Logistics Open Pit Mining • Excavator / Loader / Shovel Loading • Truck Queuing Models • Crushing and Conveying Surface • Stockpiling and Blending • Processing Plants and Smelters

Simulation Engineering Technologies

Manufacturing / Assembly Lines Logistics Rail Transportation • Rail Fleet Requirements • Loading/Offloading Rate Requirements • Rail Network Design Ports • Vessel Loading / Offloading Rate Requirements • Berth Utlisation and Vessel Demurrage • Capacity Planning Our Services • Simulation/Industrial Engineering Consulting • Capacity Planning

• Operations Improvement • Work Study • Simulation Software Training • Simulation Software Sales We utilize, provide training and support in the Simio, Arena and SimMine simulation software packages.

Simulation Engineering Technologies Bastion House, 52 Lyttelton Rd, Clubview, Centurion, 0157, South Africa T +27 (0)12 660 3772 E info@setec.co.za www.setec.co.za

be directory | 255

Included The BE Mining Directory showcases leading mining organisations from across the world, ranging from big corporations to junior mines and their supply chains.

Be seen throughout our portfolio of magazines: •BE Mining Directory •BE Mining •BE Weekly •BE Monthly •

To find out how to get involved contact: vincent@bus-ex.com